General journal entry to record the interest


Problem:

On August 1, 2013, a company issues bonds with par value of $600,000. the bonds mature in 10 years and pay 6% annual interest, payable wach february 1 and August 1. The bonds sold at $632,000. The company uses the straight-line method of amortizing bond premiums and discounts. the company's year-end is December 31.

Required:

Question: Prepare the General journal entry to record the interest accrued at December 31, 2013

Note: Provide support for rationale.

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Accounting Basics: General journal entry to record the interest
Reference No:- TGS0883833

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