Analyzing and journalizing bond transactions
On January 1, 2018, Electricians Credit Union (ECU) issued 8%, 20- year bonds payable with the face value of $400,000. The bonds pay interest on June 30 and December 31. The issue price of the bonds is 104.
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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