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Really Amazing Vacations Ltd

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Essay

Really Amazing Vacations Ltd.issues $1,000,000 of ten-year,10% bonds dated January 1,2012.Interest is payable on January 1 and July 1 each year.The proceeds realized from the issue were the $1,048,801 sales price less the $80,000 fee charged by Really Amazing's investment bank.Really Amazing's year-end is December 31.
Requirement:
Prepare journal entries:
a.The issuance of the bonds.
b.Payment of interest and related amortization on July 1,2012.
c.Accrual of interest and related amortization on December 31,2012.


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