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  3. on 1/1/22 knot company issued 12 year, 9% $600000

On 1/1/22 knot company issued 12 year, 9% $600000 face value bonds at an effective...

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Question

Accounting

On 1/1/22 knot company issued 12 year, 9% $600000 face value bonds at an effective interest rate of 12% interest payment dates are 6/30 and 12/31 of each year.

Knot uses the effective interest method. On 2/28/23 knot retired the bonds at 90 plus accrued interest

Instructions

Prepare necessary journal entries on the books of knot as of 1/1/22, 6/30/2022,12/31/22 and 2/28/23

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