(Learning Objectives 2: Recording bond transactions (at par); reporting bonds payable on the balance sheet) The board...

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(Learning Objectives 2: Recording bond transactions (at par); reporting bonds payable on the balance sheet) The board of directors of Pictures Plus authorizes the issue of €6,000,000 of 8%, 15-year bonds payable. The semi-annual interest dates are May 31 and November 30. The bonds are issued on May 31, 20X0, at par.

❙ Requirements 1. Journalize the following transactions:

a. Issuance of half of the bonds on May 31, 20X0.

b. Payment of interest on November 30, 20X0.

c. Accrual of interest on December 31, 20X0.

d. Payment of interest on May 31, 20X1.

2. Report the interest payable and bonds payable as they would appear on the Pictures Plus balance sheet at December 31, 20X0.

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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