On January 1,2019, Gates Corporation issued $600,000 of 5-year bonds due December 31,2023, for $623,337.91...
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Accounting
On January Gates Corporation issued $ of year bonds due December for $ minus bond issue costs of $ The bonds carry a stated rate of interest of payable annually on December and were issued to yield The company uses the effective interest method of amortization to amortize any discounts or premiums and the straightline method to amortize the debt issuance costs.
Required:
Prepare the journal entries to record the issuance of the bonds, all the interest payments, premium amortizations, debt issuance cost amortizations, and the repayment of the bonds. In addition, prepare a bond interest expense and premium amortization schedule for the bonds.
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