On July Y Livingston Corporation, a wholesaler of manufacturing equipment, issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest on the bonds is payable semiannually on December and June The fiscal year of the company is the calendar year.
Required:
For all journal entries, if an amount box does not require an entry, leave it blank.
Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July Y
Y July
Journalize the entries to record the following:
a The first semiannual interest payment on December and the amortization of the bond discount, using the straightline method. Round to the nearest dollar. Y Dec.
b The interest payment on June and the amortization of the bond discount, using the straightline method. Round to the nearest dollar.
Y June
