Bond Discount, Entries for Bonds Payable Transactions, Interest
Method of Amortizing Bond Discount
On July 1, 20Y1, Livingston Corporation, a wholesaler of
manufacturing equipment, issued $30,000,000 of 20-year, 11% bonds
at a market (effective) interest rate of 14%, receiving cash of
$24,001,800. Interest on the bonds is payable semiannually on
December 31 and June 30. The fiscal year of the company is the
calendar year.
Required:
For all journal entries, if an amount box does not require an
entry, leave...