Prepare the journal entry to record interest on june 30

Reference no: EM13574064

The Gorman Group issued $810,000 of 11% bonds on June 30, 2013, for $879,498. The bonds were dated on June 30 and mature on June 30, 2033 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30.

Required:

Complete the below table to record the company's journal entry. (Enter interest rate to 1 decimal place.)

December 31, 2013	Amount		Interest Rate		Total
Interest expense		x		=
Cash		x		=
Amortization of premium on bonds

June 30, 2014	Amount		Interest Rate		Total
Interest expense		x		=
Cash		x		=
Amortization of premium on bonds

Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
June 30, 2013	Cash
	Bonds Payable

Prepare the journal entry to record interest on December 31, 2013 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
December 31, 2013	Interest expense
	Premium on bonds payable
	Cash

3.Prepare the journal entry to record interest on June 30, 2014 (at the effective rate). (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
June 30, 2014	Interest expense
	Premium on bonds payable
	cash

Reference no: EM13574064

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