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on January 1. The company uses straight-line amortization on bond
premiums or discounts.
Instructions
(a)
Prepare all necessary journal entries to record the issuance of
the bonds and bond interest expense for 2014,
assuming the bond sold at 102.
(b)
97.
Prepare journal entries as in part (a) assuming the bonds sold at
(c )
Show the balance sheet presentation for the bond issue at
December 31, 2014, using (1) the 102 selling price, and
then (2) the 97 selling price
NOTE: Enter a number in cells requesting a value; enter either a
number or a formula in cells with a "?" .
P10-8B
Prepare journal entries to record issuance of bonds, interest, straight-
line amortization, and balance sheet presentation
and balance sheet presentation
Holmes Corporation sold $2,200,000, 8%, 5-year bonds on January 1,
2014. The bonds were dated January 1, 2014, and pay interest