Question
Carlyle Corporation had the following bond transactions during the fiscal year 2017: On January 1: issued ten$10,000 bonds at 101. The 5-year bonds are dated
Carlyle Corporation had the following bond transactions during the fiscal year 2017:
On January 1: issued ten$10,000 bonds at 101. The 5-year bonds are dated January 1, 2017. The contract interest rate is 5%. Straight-line amortization method is used. Interest is payable semi-annual on January 1 and July 1.
On July 1: Carlyle Corporation issued $500,000 of 10%, 10-year bonds. The bonds dated January 1, 2017 were issued at 88, and pay interest on July 1 and January 1. Effective interest rate for these bonds is 10%. Straight-line amortization method is used.
On October 1: issued 10-year bonds $10,000 face value bonds, for $10,985 cash. The bonds have a stated rate of 7%. Straight-line amortization method is used. Interest is payable on October 1 and April 1.
general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2017.
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
