On january 1 durkin limited issues 9 20 year bonds payable, Ask an Expert

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On January 1, Durkin Limited issues 9%, 20 year bonds payable with a maturity value of $70,000. The bonds sell at 97 and pay interest on January 1 and July. Durkin amortizes bond discount by the straight line method.

REQUIREMENT:

1) Journalize the issuance of the bonds on January 1.

2) Journalize the semiannual interest payment and amortization of bond discount on July 1.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9982199

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