On September 1, 2010, Siez Co. purchased $200,000 of Baker Corp.'s newly issued 10%, 5-year bonds for $216,000 as a long-term investment. Siez amortizes bond premiums and discounts on a straight-line basis.
Required:
Prepare Siez Co.'s journal entries on September 1 and December 31, 2010 as well as on March 1, 2011. (Round all calculations to the nearest dollar.)

Question

On September 1, 2010, Siez Co. purchased $200,000 of Baker Corp.'s newly issued 10%, 5-year bonds for $216,000 as a long-term investment. Siez amortizes bond premiums and discounts on a straight-line basis. 
Required:
Prepare Siez Co.'s journal entries on September 1 and December 31, 2010 as well as on March 1, 2011. (Round all calculations to the nearest dollar.)

Quizplus · Accepted Answer

The Answer of On September 1, 2010, Siez Co. purchased $200,000 of Baker Corp.'s newly issued 10%, 5-year bonds for $216,000 as a long-term investment. Siez amortizes bond premiums and discounts on a straight-line basis. 
Required:
Prepare Siez Co.'s journal entries on September 1 and December 31, 2010 as well as on March 1, 2011. (Round all calculations to the nearest dollar.)