On January 1, 20X6, Mark Corporation issued $100,000 of 10% ten-year bonds. The bonds were...
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Accounting
On January 1, 20X6, Mark Corporation issued $100,000 of 10% ten-year bonds. The bonds were issued at 103 and are dated January 1, 20X6. Assuming a December 31 fiscal year-end date and semi-annual payments that occur on July 1 and January 1:
a. What journal entry would Mark Corporation make on July 1, 20X6?
b. What journal entry would Mark Corporation make on December 31, 20X6?
c. How much is bond interest expense for 20X6 if Mark uses the straight-line method of premium amortization?
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