Amortization of bond premium


On the first day of the current fiscal year $2,000,000 of 10 year 7% bonds with interest payable annually, were sold for $2,125,000. Present enteries to record the following transactions for the current fiscal year

A Issuance of the bonds

B First annual interest payment

C Amortization of bond premium for the year using the striaght line mthod of amortization

 

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Accounting Basics: Amortization of bond premium
Reference No:- TGS0699602

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