Bonds payable with a par value of 900000 which are dated

Reference no: EM13597717

Presented below are selected transactions on the books of Simonson Corporation.

May 1, 2010 - Bonds payable with a par value of $900,000, which are dated January 1, 2010, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% , and mature January 1, 2020.

Dec 31 - Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium.

Jan. 1, 2011 - Interest on the bonds is paid.

April 1 - Bonds of par value of $360,000 are called at 102 plus accrued interest, and retired.

Dec 31 - Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.

Instructions: Prepare the journal entries for the transactions above.

Reference no: EM13597717

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