Problem: The Marigold Company issued 8% bonds with a par value of $30,000 on March 1, 2010. Interest on the bonds is payable semiannually on March 1 and Sept 1. The bonds mature in 3 years. The market interest rate on the issue date was 10%, and the bonds were sold for $28,477. Prepare the following journal entries assuming amortization of premium or discount using the effective method.
a. Issuance of bonds on March 1, 2010
b. Payment of interest on Sept 1, 2010, including amortization of premium/discount
c. Interest owed at Dec 31, 2010 including amortization of premium/discount
I am lost!! Need journal entries w/ amounts. Thanks!
a. Issuance of bonds on March 1, 2010
b. Payment of interest on Sept 1, 2010, including amortization of premium/discount
c. Interest owed at Dec 31, 2010 including amortization of premium/discount
I am lost!! Need journal entries w/ amounts. Thanks!