Question Details

Kentwood Company issued bonds with a face value 



BE 1
On January 1, 2011, Kentwood Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1.

Instructions
a.	Prepare the journal entry for the issuance assuming the bonds are issued at 97.
b.	Prepare the journal entry for the issuance assuming the bonds are issued at 102.



BE 2
Delta Company issued bonds with a face amount of $1,500,000 in 2005. As of January 1, 2011, the unamortized discount on bonds payable is $4,800.  At that time, Delta redeemed the bonds at 101.

Instructions
Assuming that no interest is payable, make the entry to record the redemption.




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