Question
Hi I need the below question answered ASAP for MBA 560 financial and managerial accounting. On January 31, Danvers Logistics, Inc., issued ten-year, 8% bonds
Hi I need the below question answered ASAP for MBA 560 financial and managerial accounting.
On January 31, Danvers Logistics, Inc., issued ten-year, 8% bonds payable with a face value of $7,000,000. The bonds were issued at 95 and pay interest on January 31 and July 31. Danvers Logistics, Inc., amortizes bonds by the straight-line method.
Requirements
Record (a) issuance of the bonds on January 31, (b) the semiannual interest payment and amortization of bond discount on July 31, and (c) the interest accrual and discount amortization on December 31. |
a. Record the issuance of the bond payable on January 31. (Record debits first, then credits. Explanations are not required. Check your spelling carefully and do not abbreviate.)
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Date | Accounts | Debit | Credit | |
Jan | 31 |
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b. Record the payment of semiannual interest and amortization of bond discount on July 31.
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Journal Entry | ||||
Date | Accounts | Debit | Credit | |
July | 31 |
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c. Record the interest accrual on December 31. (Do not round until the final answer. Then round to the nearest whole number.)
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Dec | 31 |
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