1. Camden Co. issued $200,000 of 10%, 2 year bonds on January 1, 2018. The bonds pay interest on June 30™ and December 31".The effective rate of interest is 12%. The company uses the effective interest method for amortization of discount or premium. Requirements; A) Prepare the journal entry for the issuance of the bonds 1/1/18 B) Prepare the effective interest amortization schedule C) Prepare the journal entries required for 2018
1. Camden Co. issued $200,000 of 10%, 2 year bonds on January 1, 2018. The bonds pay interest on June 30™ and December 31".The effective rate of interest is 12%. The company uses the effective interest method for amortization of discount or premium. Requirements; A) Prepare the journal entry for the issuance of the bonds 1/1/18 B) Prepare the effective interest amortization schedule C) Prepare the journal entries required for 2018
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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