Question
P10-4B On April 1, 2016, CMV Corp. issued $600,000, 5%, 5-year bonds at face value. The bonds were dated April 1, 2016, and pay interest
P10-4B
On April 1, 2016, CMV Corp. issued $600,000, 5%, 5-year bonds at face value. The bonds were dated April 1, 2016, and pay interest annually on April 1. Financial statements are prepared annually on December 31.
Instructions
(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, 2016.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
11th Edition
0471448966, 978-0471448969
