Class Exercise Summer 2019 On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of $500,000. The Bonds were issued at a sale price of 97. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 1. 6%. Required: a. Journalize the issuance of the bonds on January 1, 2018. b. Journalize the interest payment of July 1, 2018 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2018 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2019. Submit your journal to instructor

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 68E: Exercise Bonds with Annual Interest Payments Kiwi Corporation issued at par $350,000, 9% bonds on...
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Class Exercise
Summer 2019
On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of
$500,000. The Bonds were issued at a sale price of 97. The Bonds require
semi-annual interest payments on July 1 and January 1 at a stated rate of
1.
6%.
Required:
a. Journalize the issuance of the bonds on January 1, 2018.
b. Journalize the interest payment of July 1, 2018 and any
amortization of discount or premium.
c. Journalize the accrual of interest on December 31, 2018 and
any amortization of discount or premium.
d. Journalize the payment of interest on January 1, 2019.
Submit your journal to instructor
Transcribed Image Text:Class Exercise Summer 2019 On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of $500,000. The Bonds were issued at a sale price of 97. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 1. 6%. Required: a. Journalize the issuance of the bonds on January 1, 2018. b. Journalize the interest payment of July 1, 2018 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2018 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2019. Submit your journal to instructor
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