Simko Company issued $600,000, 10-year, 5 percent bonds on January 1, 2015. The bonds wereissued for $580,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record ( a ) the bond issuance on January 1, 2015, and ( b ) the payment of interest on December 31, 2015.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Simko Company issued $600,000, 10-year, 5 percent bonds on January 1, 2015. The bonds were
issued for $580,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record ( a ) the bond issuance on January 1, 2015, and ( b ) the payment of interest on December 31, 2015.

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