bonds issued at a premium bunkichi corporation issued the follow 245445

BONDS ISSUED AT A PREMIUM Bunkichi Corporation issued the following bonds at a premium:

Date of issue and sale: …………….March 1, 20-1

Principal amount: ………………….$800,000

Sale price of bonds: ……………….103

Denomination of bonds: …………..$1,000

Life of bonds: ……………………..10 years

Stated rate: …………………………8%, payable semiannually on August

………………………………………31 and February 28

REQUIRED

1. Prepare journal entries for:

(a) Issuance of the bonds at a premium.

(b) Interest payment and premium amortization on the bonds on August 31, 20-1.

(c) Year-end adjustment on the bonds for 20-1.

(d) Reversing entry for the beginning of 20-2.

(e) Interest payments and premium amortization on the bonds for 20-2

(February 28 and August 31).

2. Calculate the carrying value of the bonds on August 31, 20-2.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?