Question: Neutron Company issued $1,500,000, 10%, 20-year bonds on December 31, 2005, for $1,460,000. Interest is payable semiannually on June 30 and December 31. Neutron uses the straight-line method of amortization and has a calendar year end.
Instructions:
Prepare the appropriate journal entries on:
(a) December 31, 2005.
(b) June 30, 2006.