Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2019

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2019, at 103. interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount.

Instructions

Prepare the journal entries to record the following.

The issuance of the bonds
The accrual of interest and the premium amortization on December 31, 2020
The payment of interest on January 1, 2021..
The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Solution

Adcock Company
Journal Entries

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Instructions

Solution

Problems: Long-Term Liabilities

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