On January 1, 2013, Callahan Corporation issued $600,000, 9%, 5-year bonds, dated January 1, 2013, at 104. The bonds pay interest semi-annually on January 1 and July 1. The company has a December 31 year end. Assume amortization of $1,700 and $2,100 respectively for the first two semi-annual interest periods.
Instructions
Prepare the journal entries that Callahan Corporation would make related to the bond issue on the dates indicated below:

Question

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The Answer of On January 1, 2013, Callahan Corporation issued $600,000, 9%, 5-year bonds, dated January 1, 2013, at 104. The bonds pay interest semi-annually on January 1 and July 1. The company has a December 31 year end. Assume amortization of $1,700 and $2,100 respectively for the first two semi-annual interest periods.
Instructions
Prepare the journal entries that Callahan Corporation would make related to the bond issue on the dates indicated below:

On January 1, 2013, Callahan Corporation Issued $600,000, 9%, 5-Year