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paramod
Oct 22, 2009, 11:57 AM
Hi guys,

I have a question regarding a journal entry for a bond...

"This is from Company A’s 10K-Report. Company A makes interest payments
annually on Dec 31 of each year.

8.625% B0nds due 2010, including
Unam0rtized premium of
4462$ and
5162$.........

2005: 304,462$
2004: 305,162$

What were the journal entries on Dec 31 2005 to record interest expense?"

Thanks!

decisionsupport
Oct 26, 2009, 04:07 AM
I'm not sure you've provided enough information. For information on accounting for bonds including setting up an amortization table, see this article ACCOUNTING FOR BONDS (http://vitalbusinessinfo.blogspot.com/2009/10/accounting-for-bonds.html)

decisionsupport
Jun 25, 2012, 02:39 PM
I've moved the article to my new site in case anyone is interested in Accounting for Bonds | eFinancialAnalysis (http://efinancialanalysis.com/accounting-for-bonds/)