JosephCompany issued $765,300, 12%, 10-year bonds on December 31, 2010,for $698,336. Interest is payable semiannually on June 30 andDecember 31. Joseph Company uses the straight-line method toamortize bond premium or discount.
Prepare thejournal entries to record the following.
The issuance ofthe bonds. Date: Dec. 31, 2010
The payment ofinterest and the discount amortization on June 30, 2011. Date:June.31, 2011
The payment ofinterest and the discount amortization on December 31, 2011. DateDec. 31, 2011
The redemptionof the bonds at maturity, assuming interest for the last interestperiod has been paid and recorded. Date: Dec.31, 2020.