On June 30, 2013, Arlington Company issued $1,900,000 of 10-year, 3% bonds, dated June 30, for $1,970,000. Present entries to record the following transactions:
Arlington Company
(1) Issuance of bonds.
(2) Payment of first semiannual interest on December 31, 2013.
(3) Amortization by straight-line method of bond premium on December 31, 2013.
Solar Company has 660,000 shares of $75 par common stock outstanding. On February 13, Solar declared a 4% stock dividend to be issued April 30 to stockholders of record on March 14. The market price of the stock was $85 per share on February 13.
Required:
Journalize the entries required on February 13, March 14, and April 30.