Patino Company issued $495000 9% 20-year bonds on January 1 2011 at 106. Interest is payable semiannually on July 1 and January 1. Patino
uses straight-line amortization for bond premium or discount.
Prepare the journal entries to record the following.
The issuance of the bonds. Date: Jan. 1
The payment of interest and the premium amortization on July 1 2011 assuming that interest was not accrued on June 30. DateL: July. 1
The accrual of interest and the premium amortization on December 31 2011. Date: Dec. 31
The redemption of the bonds at maturity assuming interest for the last interest period has been paid and recorded. Date: Jan.1 2031
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