Question
On March 1, 2020 the B Company issued $800,000 of 10 year bonds payable dated January 1, 2020 at face value. The bonds have a
On March 1, 2020 the B Company issued $800,000 of 10 year bonds payable dated January 1, 2020 at face value. The bonds have a stated rate of 12% and pay interest on January 1 and July 1 of each year.
A. What is the total amount of cash that B Company received upon sale of the bonds on March 1, 2020?
B. Prepare the March 1, 2020 journal entry to issue the bonds
C. Prepare the July 1, 2020 entry to record interest expense.
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Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
4th Edition
0470534788, 978-0470534786
