Analyzing and journalizing bond transactions On January 1, 2018, Educators Credit Union (ECU) issued 8%, 20-year bonds payable with the face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 109. Journalize the following bond transactions: Issuance of the bonds on January 1, 2018. Payment of interest and amortization on June 30, 2018. Payment of interest and amortization on December 31, 2018. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Analyzing and journalizing bond transactions On January 1, 2018, Educators Credit Union (ECU) issued 8%, 20-year bonds payable with the face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 109. Journalize the following bond transactions: Issuance of the bonds on January 1, 2018. Payment of interest and amortization on June 30, 2018. Payment of interest and amortization on December 31, 2018. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSB
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Analyzing and journalizing bond transactions
On January 1, 2018, Educators Credit Union (ECU) issued 8%, 20-year bonds payable with the face value of $1,000,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 109.
Journalize the following bond transactions:
- Issuance of the bonds on January 1, 2018.
- Payment of interest and amortization on June 30, 2018.
- Payment of interest and amortization on December 31, 2018.
- Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
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