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Kelvin Company borrowed money by issuing $ 2 , 5 0 0 , 0 0 0 of 6 % bonds payable at 1 0 2
Kelvin Company borrowed money by issuing $ of bonds payable at on July The bonds are fiveyear bonds and pay interest each January and July
Read the requirements.
How much cash did Kelvin receive when it issued the bonds payable? Journalize this transaction.
Kelvin recelved $ When the bonds payable were issued.
Journalize the issuance of the bonds payable. Record debits first, then credits. Exclude explanations from any journal entries.
Journal Entry
Date Accounts Credit
How much must Kelvin pay back at maturity? When is the maturity date?
At maturity, Kelvin must pay back $
The maturity date is
Requirements
How much cash did Kelvin receive when it issued the bonds payable? Journalize this transaction.
How much must Kelvin pay back at maturity? When is the maturity date?
How much cash interest will Kelvin pay each six months?
How much interest expense will Kelvin report each six months? Use the straightline amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December and payment of interest on January
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