Reference no: EM132633022
Question - On July 1, 2020, Samson authorized $1,000,000 of six-percent, eight-year mortgage bonds, which will pay interest semi-annually, on each June 30th and December 31st.
On October 1, 2022, Samson issued one-half of the bonds, at a discount of $20,700, in return for cash and a building with a fair market value of $240,000.
The discount is amortized at each interest payment date, at a rate of $300* per month.
Prepare all the journal entries required for the bonds for the period July 1, 2020 through December 31, 2022.
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