Sandhill Company issued $444,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest...
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Accounting
Sandhill Company issued $444,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Sandhill Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following.
(a)The issuance of the bonds.
(b)The payment of interest and related amortization on July 1, 2017.
(c)The accrual of interest and the related amortization on December 31, 2017.
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