Question
1. For this question please use the following information: DDD Company issued $100,000, 5-year term bonds at 102 with 6% interest. What is the entry
1. For this question please use the following information:
DDD Company issued $100,000, 5-year term bonds at 102 with 6% interest. What is the entry when the bonds are issued?
What are the journal entries when the interest on the bonds is paid and the premium or discount is amortized?
2. For this question please use the following information:
EFG Company issued $100,000, 3-year term bonds at 97 with 5% interest. What is the entry when the bonds are issued?
What are the journal entries when the interest on the bonds is paid and the premium or discount is amortized?
Step by Step Solution
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Step: 1
1 When the bonds are issued the entry would be Debit Cash 102000 Credit Bonds Payable 100000 Credit Premium on Bonds Payable 2000 This entry reflects ...
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
