Financial and Managerial Accounting: The Basis for Business Decisions 13th ed
Williams, Haka, and Bettner
Financial Accounting
Managerial Accounting
Williams, Haka, and Bettner
Chapter 10
Exercise 10.10 (Ex 10.10) Swanson Corporation issued $8 million of 20-year, 8 percent bonds on April 1,2005, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2025. Swanson's fiscal year ends on December 31. Prepare the following journal entries:
Instructions
a. April 1, 2005, to record the issuance of the bonds.
b. September 30,2005, to pay interest and to amortize the bond premium.
c. March 31, 2025, to pay interest, amortize the bond premium, and retire the bonds at maturity.(Make two separate entries).
AND SO ON
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