21 Mar Return to the Max Industries bond in exercise S9-1
Return to the Max Industries bond in exercise S9-11. Assume that Max Industries issued the bond on July 1, 2014, at a price of 90. Also assume that Max Industries accounting year ends on December 31. Journalize the following transactions for Max Industries, including an explanation for each entry: a. Issuance of the bonds on July 1, 2014. b. Accrual of interest expense and amortization of bonds on December 31, 2014. (Use the straight-line amortization method, and round amounts to the nearest dollar.) c. Payment of the first semi-annual interest amount on January 1, 2015.
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