Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions.
July 1, 2018: entry to record issuing the bonds
June 30, 2019: entry to record payment of interest to bondholders
June 30, 2019: entry to record amortization of premium
June 30, 2020: entry to record payment of interest to bondholders
June 30, 2020: entry to record amortization of premium
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Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...
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