Kirby Limited issued $200,000, 6%, 10-year bonds on December 31, 2013, for $190,000. Interest is payable semi-annually on June 30 and December 31. Kirby has a December 31 year end. Amortization for the first semi-annual interest period is $360.
Instructions
Prepare the appropriate journal entries on
a. December 31, 2013.
b. June 30, 2014.

Question

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The Answer of Kirby Limited issued $200,000, 6%, 10-year bonds on December 31, 2013, for $190,000. Interest is payable semi-annually on June 30 and December 31. Kirby has a December 31 year end. Amortization for the first semi-annual interest period is $360.
Instructions
Prepare the appropriate journal entries on
a. December 31, 2013.
b. June 30, 2014.

Kirby Limited Issued $200,000, 6%, 10-Year Bonds on December 31