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  3. e. on december 31 of the current fiscal year, p

E. On December 31 of the current fiscal year, Palus Inc. issued...

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Accounting

E. On December 31 of the current fiscal year, Palus Inc. issued $500,000 of 10-year, 11% bonds. The bonds were
dated December 31 of the same year. Interest on the bonds is payable on June 30 and December 31 of each year.
Instructions: Record the following transactions. (Omit explanations and round to the nearest dollar).
(1) The bonds were sold for $531,161 on December 31 of the current year. The market rate of interest on this
date was 10%.
(2) Interest was paid on June 30
(3) $1,558 of Bond Premium was amortized.
(4) Interest was paid on December 31
(5) $1,558 of Bond Premium was amortized.
(6) On December 31 (bonds are one year old); one-half of the bonds were redeemed at 103.
JOURNAL PAGE
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