The Gorman Group issued $880,000 of 13% bonds on June 30, 2021, for $946,202. The...
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The Gorman Group issued $880,000 of 13% bonds on June 30, 2021, for $946,202. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). View transaction list Journal entry worksheet Record the interest on December 31, 2021 (at the effective rate). Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Interest expense Premium on bonds payable Cash This is a numeric cell, so please enter numbers only. Record entry Clear entry View general journal Journal entry worksheet
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