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Prepare the necessary journal entries to record the following transactions of bonds of Sloan Co.

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Prepare the necessary journal entries to record the following transactions relating to the;long-term issuance of bonds of Sloan Co.;March 1;Issued $600,000 face value Sloan Co. second mortgage, 8% bonds for $654,120;including accrued interest. Interest is payable semiannually on December 1 and June 1;with the bonds maturing 10 years from this past December 1. The bonds are callable at;102.;June 1;Paid semiannual interest on Sloan Co. bonds. (Use straight-line amortization of any;premium or discount.);December 1;Paid semiannual interest on Sloan Co. bonds and purchased $300,000 face value bonds at;the call price in accordance with the provisions of the bond indenture.

 

Paper#35080 | Written in 18-Jul-2015

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