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1. Sikma Company issued $600,000, 10-year, 5 percent bonds on January 1, 202. The bonds...

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Accounting

1. Sikma Company issued $600,000, 10-year, 5 percent bonds on January 1, 202. The bonds were issued for $580,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond insurance on January 1, 2021, and (b) the payment of interest on December 31, 2021.

2. What does it mean if a bond sold for "96" or at "102"?

3. What is the total interest for a 10,000, 10-year bond issue which pays 10% and was sold at "98"?

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