Exercise 14-9 On June 30, 2017, Headland Company issued $4,900,000 face value of 13%, 20-year...
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Exercise 14-9 On June 30, 2017, Headland Company issued $4,900,000 face value of 13%, 20-year bonds at $5,268,625, a yield of 12%. Headland uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548.
(1) The issuance of the bonds on June 30, 2017.
(2) The payment of interest and the amortization of the premium on December 31, 2017.
(3) The payment of interest and the amortization of the premium on June 30, 2018.
(4) The payment of interest and the amortization of the premium on December 31, 2018.
Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet.
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