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on January 1. Holmes Corporation uses the straight-line method to
amortize 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)
Prepare journal entries as in part (a) assuming g the bonds sold
at 98.
(c )
Show the balance sheet presentation for the bond issue at
December 31, 2014, using (1) the 102 selling price, and
then (2) the 98 selling price
NOTE: Enter a number in cells requesting a value; enter either a
number or a formula in cells with a "?" .
P10-10A
Prepare journal entries to record issuance of bonds, payment of interest,
and amortization of bond discount using effective interest method.
On January 1, 2014, Lock Corporation issued
$1,800,000
face value,
5%