Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bloom, Inc. issued 200, 10-year, 6%, $1,000 bonds dated January 1, 2019, at face value. The interest is payable annually on January 1st. What is

image text in transcribed
Bloom, Inc. issued 200, 10-year, 6%, $1,000 bonds dated January 1, 2019, at face value. The interest is payable annually on January 1st. What is the entry to record the issuance of these bonds? Select one: O a. Dr. Bonds Payable $200,000. Cr. Cash $200,000 O b. Dr. Cash $200,000. Cr. Bonds Payable $200,000 O c. Dr. Cash $100,000. Cr. Bonds Payable $100,000 Od Dr. Bonds Payable $100,000. Cr. Cash $100,000 Bloom, Inc. issued 200, 10-year, 6%, $1,000 bonds dated January 1, 2019, at face value. The interest is payable annually on January 1st. What is the adjusting entry to record the accrued interest on December 31, 2019? Select one: O a. Dr. Interest Expense $6,000. Cr. Interest Payable $6,000 Ob Dr. Interest Payable $6,000. Cr. Interest Expense $6,000 Oc. Dr. Interest Payable $12,000. Cr. Interest Expense $12,000 Od Dr. Interest Expense $12,000. Cr. Interest Payable $12,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Research On Professional Responsibility And Ethics In Accounting Volume 24

Authors: Charles Richard Baker

1st Edition

180071758X, 9781800717589

More Books

Students also viewed these Accounting questions

Question

What can Chandra do to correct her mistake?

Answered: 1 week ago