Question
On June 1, 2015 Weller Corp, issued $2,000,000, 9% 5-year bonds at face value. The bonds were dated June 1, 2015 and pay interest semiannually
On June 1, 2015 Weller Corp, issued $2,000,000, 9% 5-year bonds at face value. The bonds were dated June 1, 2015 and pay interest semiannually on June 1 and December 1. Financial statements are prepared annually on December 31.
A) Prepare the journal entry to record the issuance of the bonds
B) Prepare the adjusting entry to record the accrual of interest on December 31, 2015
C) Prepare the journal entry to record the payment of interest on June 1, 2016 assuming no accrual of interest from January 1, 2016 to June 1, 2016.
D) Prepare the journal entry to record the payment of interest on December 1, 2016
E) Assume that on December 1, 2016 Weller calls the bonds at 102. Record the redemption of bonds.
F) Assume that on December 1, 2016 Weller calls the bonds at 97. Record the redemption of bonds
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The Accounts Receivable Blueprint Unlocking Financial Success With Proven Strategies
Authors: Simon Udeh Andrew
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