Lombard Company issued $400,000 of 8%, 10-year bonds on January 1, 2021, at face value. Interest is
Question:
Lombard Company issued $400,000 of 8%, 10-year bonds on January 1, 2021, at face value. Interest is payable annually on January 1, 2022.
Instructions
Prepare the journal entries to record the following events:
a. the issuance of the bonds.
b. the accrual of interest on December 31, 2021.
c. the payment of interest on January 1, 2022.
d. Assuming Lombard has a September 30 year end, prepare the adjusting journal entry needed on September 30, 2021, and prepare the journal entry to record the interest payment on January 1, 2022, assuming reversing entries have not been used.
Step by Step Answer:
a 2021 Jan 1 Cash 400000 Bonds Payable 400000 To record issuance of ...View the full answer
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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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
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