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abbyyyy
Feb 22, 2010, 12:19 PM
On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:
(a) Issuance of the bonds.
(b) Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.

abbyyyy
Feb 22, 2010, 12:38 PM
On August 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:
(a) Issuance of the bonds.
(b) Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.

morgaine300
Feb 23, 2010, 12:06 AM
Please do not double-post. It just confuses us and slows us down. I've merged the two into one thread.

Also please read our guidelines for posting homework problems:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html