Alpha Company uses the straight-line method for amortization of all bond premium & discounts. During...
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Alpha Company uses the straight-line method for amortization of all bond premium & discounts. During fiscal year 2016 Alpha had the following bond payable transactions:
January 2, issued ten, $1,000 bonds at 101 1/2. These 5-year bonds are dated January 1, 2016. The contract interest rate is 6%. Interest is payable semi-annual on January 1 and July 1.
July 1, Alpha issued $500,000 of 10%, 10-year bonds. The bonds are dated January 1, 2016 were issued at 98 1/2, and pay interest on July 1 and January 1.
June 30 , Alpha issued 10-year bonds $10,000 face value bonds at 104. The bonds have a stated rate of 8%. Interest is payable on June 30 and December 31.
Use this information to prepare General Journal entries, without explanations, forthe three bonds issued and any interest accruals and payments for the fiscal year 2016. Three 12/31/16 transaction dates are provided for the fiscal year accruals. One for each individual bond issue. (Round all calculations to nearest whole dollar.)
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