Canadian Sea Rides Ltd.issues $8,000,000 of four-year,4% bonds dated January 1,2011.Interest is payable on January 1 and July 1 each year.The proceeds realized from the issue were the $8,529,082 sales price less the $50,000 fee charged by Sea's lawyers.Sea's year-end is December 31.
Requirement:
Prepare entries for
a.The issuance of the bonds.
b.Payment of interest and related amortization on July 1,2011.
c.Accrual of interest and related amortization on December 31,2011.

Question

Quizplus · Accepted Answer

The Answer of Canadian Sea Rides Ltd.issues $8,000,000 of four-year,4% bonds dated January 1,2011.Interest is payable on January 1 and July 1 each year.The proceeds realized from the issue were the $8,529,082 sales price less the $50,000 fee charged by Sea's lawyers.Sea's year-end is December 31.
Requirement:
Prepare entries for
a.The issuance of the bonds.
b.Payment of interest and related amortization on July 1,2011.
c.Accrual of interest and related amortization on December 31,2011.