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accounting question III and IV Transactions on issuing bonds at discount Grider Industries, Inc. issued $10,000,000 of 8% Bonds on January 1, 2014 and received
accounting question III and IV Transactions on issuing bonds at discount Grider Industries, Inc. issued $10,000,000 of 8% Bonds on January 1, 2014 and received cash totaling $8,872,628. The bonds pay interest semiannually on June 30 and December 31. The maturity date on these bonds is June 30, 2022. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Prepare journal entries to record the following transactions. The insurance of bonds on January 1, 2014. The payment of interest and the amortization of discount on June 30, 2014. The payment of interest and the amortization of discount on December 31, 2014. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2014 balance sheet.Transactions on convertible bonds Garr Co. issued $4,000,000 of 6%, 5-ycar convertible bonds on January 1, 2014 for 105. The bonds pay interest semiannually on June 30 and December 31. Bond premium is amortized cach interest period on a straight-line basis. On October 1, 2015, $2,000,000 of these bonds were converted into 28,000 shares of $15 par common stock. Accrued interest on Oct 1, 2015 was paid in cash on the next interest pay date on December 31, 2015. Make the journal entries on: June 30, 2015 October 1,2015 December 31, 2015
accounting question III and IV
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