Recording Bond Issue: Entries for Issuance and Interest (Straight-Line Amortization)
Westover Corporation had $300,000, 10-year bonds outstanding on December 31. 2011 (end of the accounting period). Interest is payable each December 31. The bonds were issued on January 1, 2011. The company uses the straight-line method to amortize any premium or discount. The December 31, 2011. annual financial statements showed the following:
Income statement |
|
Bond interest expense | $ 23.100 |
Balance sheet |
|
Bonds payable (net liability) | 281,100 |
Required (show computations):
1. What was the issue price of the bonds? Give the journal entry to record the issuance of the bonds.
2. Give the entry to record 2011 interest.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.