Question

Foreman cleaners issued 800,000 of 10% 20 year bonds on January 1, 2019 at 84.96 to yield at 12%. Interest is payable semiannually on July 1 and January 1

Prepare the journal entries to record the following

A. The issuance of the bonds

B. The payment of interest and the related amortization on July 1, 2019

C. The accrual is interest and related amortization on December 31, 2019

Answer 1