Question
P15-1B On January 1, 2015, Weller Corp. issued $3,000,000, 9%, 5-year bonds at 96. The bonds were dated January 1, 2015, and pay interest annually
P15-1B On January 1, 2015, Weller Corp. issued $3,000,000, 9%, 5-year bonds at 96. The bonds were dated January 1, 2015, and pay interest annually on January 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 and amortization of the discount on December 31, 2015.
(c) Show the balance sheet presentation on December 31, 2015. (d) Prepare the journal entry to record payment of interest on January 1, 2016.
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
