Straight-line amortization used for discounts and premiums, Accounting Basics

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Straight-line amortization used for discounts and premiums

Cortez Company issues $5,000,000 face value of bonds at 96 on May 1, 2009, plus accrued interest. The bonds are dated January 1, 2009, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On July 1, 2012, $3,000,000 of the bonds are called at 102.

Prepare the journal entries needed on:

a. May 1, 2009
b. Each interest payment date in 2009.
c. July 1, 2012

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Accounting Basics: Straight-line amortization used for discounts and premiums

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Accounting Basics: Straight-line amortization used for discounts and premiums

Reference No:- TGS073925

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Recent Questions Asked Accounting Basics

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Accounting Basics: Straight-line amortization used for discounts and premiums

Reference No:- TGS073925

Recent Questions Asked Accounting Basics

Q : Determining the productivity of organization

Q : Compute the depreciation deduction for the computer system

Q : Find the amount due on the note

Q : What amount of sales must jackson generate

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Q : Profitability-what areas of the business would you examine

Q : Affect the accounting for commonwealth edison bond issue

Q : Brokerage commissions and taxes

Q : Income from investment in pirates corporation stock

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