Question
FWP Co. issued $100,000, 10-year bonds on January 1, 2013. The stated rate of interest on the bonds is 10% payable annually on 12/31. Provide
FWP Co. issued $100,000, 10-year bonds on January 1, 2013. The stated rate of interest on the bonds is 10% payable annually on 12/31. Provide the requested information for the bonds immediately after issuance (January 1, 2013) under each of the three independent scenarios described below:
On January 1, 2014, FWP sells $2 million of 8% bonds at face value with interest to be paid at the end of each year. Prepare the journal entries on the following dates: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars not in millions.) |
(a) | January 1, 2014 (the initial bond sale). |
(b) | March 31, 2014 (the end of the first quarter). |
(c) | December 31, 2014 (the payment of interest at the end of the year; assume that the interest owed for each of the first three quarters has been properly accrued). |
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