Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Journalizing bond transactions< Owen Company issued a $110,000, 11%, the 10-year bond payable at 94 on January 1, 2018. Interest is paid semiannually on January 1 and July 1. Requirements Journalize the issuance of the bond payable on January 1, 2018. Journalize the payment of semiannual interest and amortization of the bond discount or premium on July 1, 2018.

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
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Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise.

Journalizing bond transactions<

Owen Company issued a $110,000, 11%, the 10-year bond payable at 94 on January 1, 2018. Interest is paid semiannually on January 1 and July 1.

Requirements

  1. Journalize the issuance of the bond payable on January 1, 2018.
  2. Journalize the payment of semiannual interest and amortization of the bond discount or premium on July 1, 2018.
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