Question
On October 1, 2016, Kristal Corp. issued $700,000,5%,10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October
On October 1, 2016, Kristal Corp. issued $700,000,5%,10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
Prepare the adjusting entry to record the accrual of interest on December 31, 2017.
Assume that on January 1, 2018, Kristal pays the accrued bond interest and calls the bonds. The call price is104. Record the payment of interest and redemption of the bonds.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
