Lamar Company authorized a $500,000,five-year,12% bond issue dated October 1,20A,with semi-annual interest to be paid each September 30 and March 31.On October 1,20A,the bonds were issued (sold)for $497,340.
(a)Give the entry to record the sale of the bonds
(b)It is December 31,20A,the end of the accounting period.Give the required adjusting entry using straight-line amortization
(c)Was the bond sold at par,at a discount or at a premium?
(d)Will interest expense be greater than or less than the cash payments for interest?

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The Answer of Lamar Company authorized a $500,000,five-year,12% bond issue dated October 1,20A,with semi-annual interest to be paid each September 30 and March 31.On October 1,20A,the bonds were issued (sold)for $497,340.
(a)Give the entry to record the sale of the bonds
(b)It is December 31,20A,the end of the accounting period.Give the required adjusting entry using straight-line amortization
(c)Was the bond sold at par,at a discount or at a premium?
(d)Will interest expense be greater than or less than the cash payments for interest?

Lamar Company Authorized a $500,000,five-Year,12% Bond Issue Dated October 1,20A,with