Question - Christopher Kearney Corporation sold $3,500,000, 7%, 20-year bonds on June 30, 2013. The company bonds were dated, June 30, 2013, and pay interest on June 30 and December 31. The company uses straight-line amortization for premiums and discounts.
a) Prepare the journal entry on June 30, 2013 to record the issuance of the bonds assuming they sold at:
1.96
2.104
b) Prepare the journal entries on December 31, 2013 and June 31, 2014 to record the first two interest payments under both assumed sales.