Question - Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds by Titus Co.:
January 1 Issued $600,000 face value, 8%, 5-year bonds for $651,000, a 6% yield. Interest is payable semiannually on January 1 and July 1. The bonds are callable at 102.
July 1 Paid semiannual interest on the bonds. Use effective-interest amortization of any discount/premium.
December 31 Accrued semiannual interest on the bonds