Question
On March 1, 2018, Hubbard Co. issued at par $20 million of 6%, 25-year bonds payable. Interest is payable semiannually each March1 and September 1.
On March 1, 2018, Hubbard Co. issued at par $20 million of 6%, 25-year bonds payable. Interest is payable semiannually each March1 and September 1.
Bonds Question 1: What is the amount of cash paid to bondholders for interest during 2018?
Bond Question 2: Prepare the adjusting entry necessary at December 31, 2018.
Account Name | Debit ($) | Credit ($) |
Dr. |
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Cr. |
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Bond Question 3: What is the amount of interest expense on this bond reported in Hubbard's 2018 Income Statement?
Bond Question 4: What is the amount of bonds payable reported in Hubbard's 2018 balance sheet?
Bond Question 5: What is the amount of Interest payable reported in Hubbard's 2018 balance sheet?
Bond Question 6: Prepare the journal entry necessary to record the semiannual payment of interest to bondholders on March 1, 2019.
Enter the debit for the higher dollar amount first.
Account Name | Debit ($) | Credit ($) |
Dr. |
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Dr. |
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Cr. |
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