Question
On May 1, 2018, Kirmer Corporation purchased $906,000 of 14% bonds, interest payable on January 1 and July 1, for $854,100 plus accrued interest. The
On May 1, 2018, Kirmer Corporation purchased $906,000 of 14% bonds, interest payable on January 1 and July 1, for $854,100 plus accrued interest. The bonds mature on January 1, 2024. Amortization is recorded when interest is received by the straight-line method. (Assume bonds are available for sale.)
Prepare the journal entry for May 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Note that next coupon will be paid on 1 July and the bond was ...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
9th Edition
125972266X, 9781259722660
