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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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
