How is A and B done please? LO10-5, LO10-6 EXERCISE 10.10 Accounting for Bonds...
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How is A and B done please?
LO10-5, LO10-6 EXERCISE 10.10 Accounting for Bonds Issued at a Discount: ssuance, Interest Payments, and Retirement Mellilo Corporation issued $5 million of 20-year, 9.5 percent bonds on July 1, 2015, at 98. Interest is due on June 30 and 30, 2035. Mellilo's fiscal year ends on December 31. Prepare the following journal entries: a. July 1, 2015, to record the issuance of the bonds. b. December 31, 2015, to pay interest and amortize the bond discount. c. December 31 of each year, and all of the bonds in the issue mature on June June 30, 2035, to pay interest, amortize the bond discount, and retire the bonds at maturity (make two separate entries). d. Briefly explain the effecet of amortizing the bond discount upon (I) annual net income and (2) annual net cash flow from operating activities. (Ignore possible income tax effects.)
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