On January 1, 2011, Park Corporation Sold A $600,000, 7.5 Percent Bond Issue (8.5 Percent Market Rate). The Co?

On January 1, 2011, Park Corporation sold a $600,000, 7.5 percent bond issue (8.5 percent market rate). The company does not use a discount account. The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in four years.
1. Give the journal entry to record the issuance of the bonds.
2. Give the journal entry to record the interest payment on June 30, 2011. Use effective-interest amortization.
3. How the bond interest expense and the bonds payable should be reported on the June 30, 2011, income statement and balance sheet.

Both comments and pings are currently closed.

One Response to “On January 1, 2011, Park Corporation Sold A $600,000, 7.5 Percent Bond Issue (8.5 Percent Market Rate). The Co?”

  1. Uncommon Sense says:

    And?

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews