Define straight-line amortization for bond premium

Reference no: EM131830830

Question: Sehr Company issued $500,000, 6%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Sehr uses straight-line amortization for bond premium or discount. Instructions Prepare the journal entries to record the following events.

(a) The issuance of the bonds.

(b) The accrual of interest and the premium amortization on December 31, 2017.

(d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Reference no: EM131830830

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