On January 1, Borgstrom Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually
Question:
Instructions
Prepare journal entries to record the following events.
(a) The issuance of the bonds.
(b) The payment of interest on July 1, assuming no previous accrual of interest.
(c) The accrual of interest on December 31.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (9 reviews)
a Jan 1 Cash 300000 Bonds Payable 3...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted:
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
On Dec. 1, 2014 Pete Fiore opened Flore Consulting Services, Inc. He provides marketing seminars guaranteed to increase sales by SK. The first fiscal (calendar) year will end December 31, 2014. One...
-
Prepare journal entries to record the following events and transactions. 1. In 2005, a donation of $900,000 was received by a non-prot entity to fund the education of students affected by Hurricane...
-
Give general journal entries to record the following events during September: 1. Sale of goods 2. Cost of goods sold At Knox Corporation, production is started in the Fab department. The work is then...
-
We can measure how good a center Kevin Bacon is by computing each performer's Hollywood number or average path length. The Hollywood number of Kevin Bacon is the average Bacon number of all the...
-
Investment A costs $10,000,000 and offers a single cash inflow of $13,000,000 after one year. Investment B costs $1,000,000 and will be worth $2,000,000 at the end of the year. The appropriate...
-
Why is it not advisable to hold hot-rolled steel stock in a collet?
-
If you are preparing a client for a deposition, what rules for responding to deposition questions should you review with the client?
-
Presented below are the consolidated work paper balances of Bush, Inc., and its subsidiary, Dorr Corporation, as of December 31, 2016 and 2015: Additional information: a. On January 20, 2016, Bush,...
-
You have the following information about Acterna Corp; Cash Coverage Ratio=25; Days sales in receivables=19 and Interval Measure=32. Interpret each ratio ny explaining what it tells us about the...
-
In this mini-case you will perform some procedures required as a part of audit planning. For ease your audit manager has already organized the workpapers and completed several of the required...
-
On January 1, Camel Cove Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Instructions Present journal entries to record the...
-
Reffue Company issued $400,000 of 9%, 10-year bonds on January 1, 2012, at face value. Interest is payable semiannually on July 1 and January 1. Instructions Prepare the journal entries to record the...
-
Indicate whether each of the following statements about a liquidation is true or false. If the statement is false, explain why. a. Liabilities assumed by a shareholder when a corporation liquidates...
-
Many years ago, Brad purchased $300,000 of coverage on his dwelling under a HO-3 policy. On July 4th, his house caught fire and he suffered damages of $120,000. The replacement cost, excluding the...
-
What are the main assumptions when VaR is calculated using the Historical Simulation (HS) method. What are the advantages and disadvantages of the HS methods and how does HS compares to the Weighted...
-
An investment of $20000 will create a perpetual after-tax cash flow of $2000. The required return is 7%, what's the Profitability Index of the project?
-
Wilmur Corporation has announced that it will pay its first annual stock dividend of $1.05 per share exactly two years from today.Analysts estimate that this dividend will grow by 1.5% per year in...
-
In developing rates, premium data must be adjusted for current rate level. Explain why this must be done. In developing rates, the loss data must be adjusted for future development. Explain why this...
-
Specifications require the oil filter for your car to be tightened with a torque of 30 N m. You are using a 15-cm-long oil filter wrench, and you apply a force at the very end of the wrench in the...
-
The activities listed in lines 2125 serve primarily as examples of A) Underappreciated dangers B) Intolerable risks C) Medical priorities D) Policy failures
-
Which solution is less acidic, solution A with pH 2 or solution B with pH 6, and by how much?
-
The McCune Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,900 per month. The other barbers are paid $1,900 per month. In addition, each barber is...
-
Huber Company bottles and distributes No-FIZZ, a fruit drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 70 cents per bottle. For the year 2010,...
-
Keppel Manufacturing had a bad year in 2010. For the first time in its history it operated at a loss.The company's income statement showed the following results from selling 60,000 units of product:...
-
Deep in space there is an average particle density = 0 . 9 9 cm -3 3 and an extremely low pressure of P 0 = 4 . 9 x 1 0 - 1 -17 N / m 2 . What is the average temperature of ( mostly ) empty space?...
-
After analyzing the population data of a bacteria colony, a microbiologist determines that the population of the bacterial colony can be modeled by the equation P(t) = 500e0.1t. (a) What is the...
-
Discuss the Target data breach of 2013 . It was the first major data breach to receive truly substantial media coverage and not have that coverage die off immediately after (as with most other...
Study smarter with the SolutionInn App