Un 1/1/2020, Blue Company issued 5-year, 9% bonds with a par value of $1,000,000 The company received $900,000 in cash. Interest is paid semiannually on 30 June and 31 December every year. Required: (1) Prepare the journal entry to record the bonds' issuance on 1/1/2020 (2) Prepare the journal entry to record the interest payment and the amortization of bond discount or premium on 30/6/2020. (3) Prepare the journal entry to record the repayment of bonds on 31/12/2024

Un 1/1/2020, Blue Company issued 5-year, 9% bonds with a par value of $1,000,000 The company received $900,000 in cash. Interest is paid semiannually on 30 June and 31 December every year. Required: (1) Prepare the journal entry to record the bonds' issuance on 1/1/2020 (2) Prepare the journal entry to record the interest payment and the amortization of bond discount or premium on 30/6/2020. (3) Prepare the journal entry to record the repayment of bonds on 31/12/2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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