E14-4 - (a) The issuance of the bonds. (b) The payment of...

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E14-4 (Entries for Bond Transactions-Straight-Line) Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2013, at 102. Interest is payable semiannually on July 1 and January 1. Foreman Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
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Unformatted text preview: (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2013. (c) The accrual of interest and the related amortization on December 31, 2013. Date Description/Account (a) 1/1/13 Cash Bonds Payable Premium on Bonds Payable (b) 7/1/13 Interest Expense Premium on Bonds Payable Cash (c) 12/31/13 Interest Expense Premium on Bonds Payable Interest Payable...
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