Indicate whether the bonds were issued at a premium or a discount? |
Is the amortization schedule based on the straight-line method or the effective interest method? |
Determine the stated interest rate and the effective interest rate. Stated Rate % Effective Rate % |
On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2006. Date Description/Account Debit Credit 01/01/06 |
On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2006. (Interest is paid January 1.) Date Description/Account Debit Credit 12/31/06 |
On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2013. Capulet Corporation does not use reversing entries. Date Description/Account Debit Credit 01/01/13 12/31/13 |
Discount
Effective interest