Solution-Prepare the journal entries to record the issuance

Prepare the journal entries to record the issuance

Reference no: EM13538523

Kinzie Co. sold $3,000,000, 9%, 5-year bonds on January 1, 2010. The bonds were dated January 1, 2010, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually.
Instructions

(a) Prepare the journal entries to record the issuance of the bonds assuming they sold at:

(1) 101.

(2) 97.

(b) Prepare amortization tables for both assumed sales for the first three interest payments.

(d) Show the balance sheet presentation for both assumed sales at December 31, 2010.

Reference no: EM13538523

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Prepare the journal entries to record the issuance

Reference no: EM13538523

Reference no: EM13538523

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