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  3. bonds payable journal entries; effective interest

Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2017, Phillip Company issued $600,000...

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Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2017, Phillip Company issued $600,000 of ten-year, nine percent bonds payable for $496,771, yielding an effective interest rate of twelve percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2018, and (C) the semiannual interest payment and discount amortization on December 31, 2018. Round amounts to the nearest dollar. General Journal Description Credit Debit Date a.) $ 0 $ Dec.31 Cash 0 0 To record issuance of bonds b.) 0 0 Jun.30 0 Cash 0 0 To record semiannual interest payment and discount amortization. c.) 0 Dec.31 0 Cash 0 0 To record semiannual interest payment. OOO

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