Question

Adcock Company issued $600,000, 9%, 20-year bonds on January 1,2015, at 103. Interest is payable semiannually on July 1 andJanuary 1. Adcock uses straight-line amortization for bond premiumor discount.

Prepare the journal entry to record the issuance of thebonds.

Prepare the journal entry to record the payment of interest andthe premium amortization on July 1, 2015, assuming that interestwas not accrued on June 30.

Prepare the journal entry to record the accrual of interest andthe premium amortization on December 31, 2015.

Prepare the journal entry to record the redemption of the bondsat maturity, assuming interest for the last interest period hasbeen paid and recorded.