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Question: Journalizing bond issuance and interest payments On January 1, 2016, Micheal Unlimited issues 15%, 15-year bonds payable with a face value of $230,000. The bonds are issued at 106 and pay interest on June 30 and December 31.
Requirements: 1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity. (Give the date.)
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