On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which provides a yield of 11%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. Prepare the journal entries to record the following transactions: (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1. The issuance of the bonds on June 30, 2020 2. The payment of interest and the amortization of the premium on December 31, 2020 3. The payment of interest and the amortization of the premium on June 30, 2021 The payment of interest and the amortization of the premium on December 31, 2021

On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which provides a yield of 11%. The company uses the effective interest method to amortize any bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. Prepare the journal entries to record the following transactions: (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1. The issuance of the bonds on June 30, 2020 2. The payment of interest and the amortization of the premium on December 31, 2020 3. The payment of interest and the amortization of the premium on June 30, 2021 The payment of interest and the amortization of the premium on December 31, 2021

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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