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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Bond Interest and Amortization
Andrews Corporation issued $300,000, 12%, 3-year bonds on January 1. Interest is payable semiannually on June 30 and December 31. Andrews uses the straight-line method of amortization.
Required
a. Prepare the journal entry to record the issuance of the bonds if they are issued at 101.
b. Prepare the journal entry to record the first payment of interest on June 30.
c. Prepare a bond amortization schedule.
d. Repeat requirements a–c assuming the bonds were issued at 98.
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