Analyzing and journalizing bond transactionsOn 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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Asked Jan 23, 2020
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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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