Morrison Company issued $200,000 of 10-year,8% bonds at 92 on July 1,2016.Interest is payable semiannually on January 1,and July 1.The company uses straight-line amortization for premium or discount on bonds payable.
Required:
a)Prepare all necessary journal entries related to the bonds for 2016 and 2017.
b)What amount of interest expense will be shown on the 2016 and 2017 income statements?
c)What amount of interest payments will be shown on the statement of cash flows for 2016 and 2017?

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The Answer of Morrison Company issued $200,000 of 10-year,8% bonds at 92 on July 1,2016.Interest is payable semiannually on January 1,and July 1.The company uses straight-line amortization for premium or discount on bonds payable.
Required:
a)Prepare all necessary journal entries related to the bonds for 2016 and 2017.
b)What amount of interest expense will be shown on the 2016 and 2017 income statements?
c)What amount of interest payments will be shown on the statement of cash flows for 2016 and 2017?

Morrison Company Issued $200,000 of 10-Year,8% Bonds at 92 on July