Millwood Company Prepared a Bond Issue Dated January 1, 20A

question 66

Essay

Millwood Company prepared a bond issue dated January 1, 20A. On January 1, 20A, the company sold $100,000 of its par value bonds at 103. The bonds mature in thirty years and have a stated rate o interest of 8% per year. Interest is payable annually on December 31. Straight-line amortization is us (round to the nearest dollar).
(a) Give the entry to record the sale of bonds on January 1, 20A:
(b) Give the entry to record interest expense at December 31, 20A (end of the annual accounting period)
(c) Show how the bonds would be reported on the balance sheet of Millwood Company dated December 31, 20C

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