Question
On May 1, 2019, Concord Corporation issued $660,000, 7%, 5-year bonds at face value. The bonds were dated May 1, 2019, and pay interest annually
On May 1, 2019, Concord Corporation issued $660,000, 7%, 5-year bonds at face value. The bonds were dated May 1, 2019, and pay interest annually on May 1. Financial statements are prepared annually on December 31.
Prepare the journal entry to record the issuance of the bonds.
Prepare the adjusting entry to record the accrual of interest on December 31, 2019.
Show the balance sheet presentation on December 31, 2019.
Prepare the journal entry to record payment of interest on May 1, 2020
Prepare the adjusting entry to record the accrual of interest on December 31, 2020.
Assume that on January 1, 2021, Concord pays the accrued bond interest and calls the bonds at 101. Record the payment of interest and redemption of the bonds
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
9th Edition
111970958X, 9781119709589
