Question: The pearl company issued 210000 of 9% bonds on January 1 2017. The bonds are due January 1 2022 with interest payable each July 1 and January 1. The bonds were issued at 96.
Prepare the journal entries for
(a) Jan 1
(b) July 1 and
(c) December 31.
Assume the pearl company records straight line amortization semi annually