On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:
(a)Issuance of the bonds.
(b)First semiannual interest payment
(record as separate entry from discount amortization).
(c)Amortization of bond discount for the year, using the straight-line method of amortization.

Question

On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:
(a)Issuance of the bonds.
(b)First semiannual interest payment 
(record as separate entry from discount amortization).
(c)Amortization of bond discount for the year, using the straight-line method of amortization.

Quizplus · Accepted Answer

The Answer of On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:
(a)Issuance of the bonds.
(b)First semiannual interest payment 
(record as separate entry from discount amortization).
(c)Amortization of bond discount for the year, using the straight-line method of amortization.

On the First Day of the Current Fiscal Year, $1,500,000