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
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
price then( 2) the 98 selling
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