Acc422 Intermediate Accounting: E14-4 Celine Dion Company issued $600,000

Acc422 Intermediate Accounting

Exercise 14-4 Entries for Bond Transactions—Straight-Line
Celine Dion Company issued $600,000 of 10%, 20-year bonds on January 1, 2014, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the straight-line method of amortization for bond premium or discount.

Instructions:
Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) The issuance of the bonds.
(b) The payment of interest and the related amortization on July 1, 2014.
(c) The accrual of interest and the related amortization on December 31, 2014.
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