Kornet Co. produces and sells graphite for golf clubs. The following transactions were completed by Kornet Co., whose fiscal year is the calendar year:
1. Journalize the entries to record the transactions.
Date Account Debit Credit
Jul. 1, 2007
Date Account Debit Credit
Dec. 31, 2007
Date Account Debit Credit
Dec. 31, 2007
Date Account Debit Credit
Dec. 31, 2007
Date Account Debit Credit
Jun. 30, 2008
Date Account Debit Credit
Dec. 31, 2008
Date Account Debit Credit
Dec. 31, 2008
Date Account Debit Credit
Dec. 31, 2008
Date Account Debit Credit
Jul. 1, 2009
2. Indicate the amount of the interest expense in (a) 2007 and (b) 2008.
(a) 2007 $
(b) 2008 $
3. Determine the carrying amount of the bonds as of December 31, 2008.