On january 1 2007 the calvert company issues 12 100000, Ask an Expert

Accounting

On January 1, 2007 the Calvert Company issues 12% , $100,000 face value bonds for $103,545.91, a price to yield 10%. The bonds mature January 1, 2009. Interest is paid semiannually on June 30 and December 31.

Required

Prepare a bond interest expense and premium ammorization schedule using the straight-line method.

Prepare the journal entries to record the interest payments on Junne 30, 2007 and December 31, 2007, using both methods.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796886

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