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Entries for Bond TransactionsStraightLine Digital Company issued $600000 of 10% 20 year bonds on January 1 2014 at 102 Interest is payable semiannually on July 1 and January 1 Digital Company

(Entries for Bond Transactions—Straight-Line) Digital Company issued $600,000 of 10% 20 -year bonds on January 1, 2014, at 102 Interest is payable semiannually on July 1 and January 1. Digital Company uses the straight-line method of amortization for bond premium or discount. Instructions: make journal entries and show formulas Prepare the journal entries to record the following. (a) The issuance of the bonds. Jan 1, 14 Account Title Amount Account Title Account Title (b) The payment of interest and related amortization on July 1, 2014. Jul 1, 14 Account Title Formula Account Title Formula Account Title (c) The accrual of interest and the related amortization on December 31, 2014. Dec 31, 14 Account Title Formula Account Title Formula

 

Apr 29 2020 View more View Less

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