Accounting -Florence Corporation issued $300,000, 11%, 10-year bonds on January 1, 2015, for $750,150.

| January 30, 2017

Question
Florence Corporation issued $300,000, 11%, 10-year bonds on January 1, 2015, for $750,150. This price resulted in an effective interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Florence uses the effective-interest method to amortized bond premium or discount.DIRECTIONS: Prepare the journal entries to record the following. (Round to the nearest dollar)
(a) The insurance of the bond.(b) The payment of interest and the discount amortization on July 1, 2015, assuming that interest was not accrued on June 30.(c) The accrual of interest and the discount amortization on December 31, 2015.

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