Problem

Journalizing bond transactions [10 min]Worthington Mutual Insurance Company issued a $50,0...

Journalizing bond transactions [10 min]

Worthington Mutual Insurance Company issued a $50,000, 5%, 10-year bond payable at a price of 108 on January 1, 2012.

Requirements

1. Journalize the issuance of the bond payable on January 1, 2012.


2. Journalize the payment of semiannual interest and amortization of the bond discount or premium on July 1, 2012, using the straight-line method to amortize the bond discount or premium.

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