On January 1st, 2017, Fruit Chews Co. sold 5%, 20-year bonds having a maturity value...
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On January 1st, 2017, Fruit Chews Co. sold 5%, 20-year bonds having a maturity value of $1,713,500 for $1,500,000 , which provides bondholders with a 6% yield to maturity. The bonds are dated Jan 1, 2017. Interest is payable every July 1 and January 1. Use the effective interest method.
Instructions: A) Prepare the journal entries for bond issuance B) Prepare the schedule for interest expense and bond amortization for the 20-year life of the bond C) Prepare the journal entries to record the interest payment and amortization got 2020, 2022, 2028, 2031, and 2033
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