Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can some body answer this question please need fast answer 10 On February 28, 20X6, Mackerel Corp. issues 6%, 20-year bonds payable with a face

can some body answer this question please need fast answer
image text in transcribed
image text in transcribed
10 On February 28, 20X6, Mackerel Corp. issues 6%, 20-year bonds payable with a face value of $1,800,000. The bonds pay interest on February 28 and August 31. Mackerel Corp, amortizes bonds by the effective interest method. Assuming the market rate is 5%, journalize the following bond transactions Requirements: (1) Issuance of the bonds on February 28, 20X6 at the price of $2,025,925. (2) (2) Payment of interest and amortization of the bonds on August 31, 20X6. (2) (3) Accrual of interest and amortization of the bonds on December 31, 20X6, the year-end (2) (4) Payment of interest and amortization of the bonds on February 28, 20x7.(2) (5) Report interest payable and bonds payable as they would appear on the Mackerel Corp. balance sheet at December 31, 20X6, (2) CH Current libilities Interest payable (3) Accrual of interest and amortization of the bonds on December 31, 20X6, the year-end. (2) (4) Payment of interest and amortization of the bonds on February 28, 20x7.(2) (5) Report interest payable and bonds payable as they would appear on the Mackerel Corp, balance sheet at December 31, 20X6. (2) CR Current liabilities: Interest payable Non-current liabilities: bonds payable (6) Add: Premium bonds, payable (7)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental Accounting Principles

Authors: Larson Kermit, Tilly Jensen

Volume I, 14th Canadian Edition

71051503, 978-1259066511, 1259066517, 978-0071051507

Students also viewed these Accounting questions