On Jan. 1 XYZ Co. issued ten $1,000 bonds at 102. The 5 year bonds are dated Jan. 1, 2016. The contract interest rate is 6%. Straight line amortization method is used. Interest is payable semi-annual on Jan 1 and July 1
On July 1 XYZ Co. issued $500,000 of 10% 10 year bonds. The bonds dated Jan 1, 2016 were issued at 88.5 and pay interests on July 1 & Jan 1. Effective interest rate for these bonds is 12 %. Straight line amortization method is used.
On Oct. 1 XYZ Co. issued 10 year bonds $10,000 face value bonds, for $ 10,853 cash. The bonds have a stated rate of 9% but an effective rate of 6%. Straight line amortization method is used. Interest payable on October 1 and April 1
Prepare all general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2016. (round all calculations to nearest whole dollar)