Peplum Show Company issued $600,000 of 10%, 20-year bonds on January 1, 2018 at 102. Interest is payable semi-annually on July 1 and January 1. Peplum Show company uses effective-interest method for amortization of bon discount or premium as the case may be. Assuming effective yield of 9.7705%, prepare journal entry for payment of interest and related amortization on July 1, 2018.
Peplum Show Company issued $600,000 of 10%, 20-year bonds on January 1, 2018 at 102. Interest is payable semi-annually on July 1 and January 1. Peplum Show company uses effective-interest method for amortization of bon discount or premium as the case may be. Assuming effective yield of 9.7705%, prepare journal entry for payment of interest and related amortization on July 1, 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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