Question: Korean Corporation issued $2 million, 10-year, 6% bonds on January 1, 2015. Interest is payable semi-annually on July and January 1st
Prepare the entry to record the sale of these bonds, assuming they were issued at the below prices.
Record the first semi-annual interest payment on July 1.
a. Issued at 98.
| Date |
Account Titles |
Ref. |
Debit |
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b. Issued at 103
| Date |
Account Titles |
Ref. |
Debit |
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|