Ritter Company issues $600,000 of 10%, 10-year bonds on January 1, 2008, at 102. Interest is payable semiannually on July 1 and January 1. The company uses the straight-line method of amortization.
Instructions
(a) Journalize the entries for the bonds on (1) January 1, 2008, (2) July 1, 2008, and (3) December 31, 2008.