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What are the journal entries upon issuance on February

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Reference no: EM132880659

Question - Celtics Ltd. issues 10-year bonds with a par value of $900,000 on January 1, 2020. Stated interest is at 6%, payable semi-annually on January 1 and July 1. An investor bought this bond at 103 on February 1, 2020.

Required - Rounding off all figures to the nearest dollar:

a) What are the journal entries upon issuance on February 1, 2020?

b) What are the journal entries for the first interest payment to this investor on July 1, 2020?

c) What is the net interest receipt for the investor on July 1, 2020?

Reference no: EM132880659

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