On January 1,Preston Corporation issued 6%,20-year bonds at 108.The face value is $450,000 and interest is paid semiannually.Prepare the journal entries to record:
a.Issuance of the bonds.
b.First semiannual interest payment and amortization of the premium using the straight-line method.

Question

Quizplus · Accepted Answer

The Answer of On January 1,Preston Corporation issued 6%,20-year bonds at 108.The face value is $450,000 and interest is paid semiannually.Prepare the journal entries to record:
a.Issuance of the bonds.
b.First semiannual interest payment and amortization of the premium using the straight-line method.

On January 1,Preston Corporation Issued 6%,20-Year Bonds at 108