[futurecpa0010]

For those of you using Becker (FAR)…

On page F5-49 in the example, there is a note at the bottom that says the journal entry to record amortization should also be recorded. If we use the effective interest method (as on page F5-47), would the journal entry simply be:

(also recorded on June 30)

Dr. Bond Interest Expense 5,585

Cr. Discount on Bonds Payable 5,585

? If I am understanding this correctly, we are taking a full 6 months of amortization on the bond since the bonds were dated January 1 (even though they were issued on April 1)

[futurecpa0010]

Received the answer to this question. The answer to this was YES, for those of you interested.

[jimboace88]

Thanks for posting—every fact helps at this point!

FAR 07/27/11 - 87
AUD 10/01/11 - 85
BEC 11/15/11 - 87
REG 01/03/12 - 92

[Author]

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