Required information
Problem 10-4A (Algo) Straight-Line: Amortization of bond discount LO P2
[The following information applies to the questions displayed below]
Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2020, that pay interest semiannually on June 30 and
December 31 They are issued at $648,412 when the market rate is 6%.
Problem 10-4A (Algo) Part 1
Required:
1. Prepare the January 1 journal entry to record the bonds' issuance.
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Journal entry worksheet
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1
Record the issue of bonds with a par value of $660,000 on January 1, 2020 at
an issue price of $648,412.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Debit
Credit
Clear entry
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