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UP Roman Co. borrows $20,000 on February 15, 2019. The loan's maturity is August 15, 2019 and the annual interest rate is 9%. Interest is
UP Roman Co. borrows $20,000 on February 15, 2019. The loan's maturity is August 15, 2019 and the annual interest rate is 9%. Interest is paid on May 15, 2019, and again at maturity. Roman prepares financial reports quarterly on March 31, June 30, September 30, and December 31. How much interest expense will Roman accrue on March 31? . How much interest will Roman pay on May 15? How much total cash will Roman pay on August 15? How much total interest expense will Roman record over the 6 months that the loan is outstanding? Plentiful Incorporated issues a $500,000 bond on December 31, 2015. The bond requires annual coupon payments and has a 10% stated rate. The bond's maturity date is December 31, 2020. For journal entries below, use the following abbreviations: CASH + cash, BP = bonds payable, INTEXP = interest expense, INTINC = interest income, INTPAY = interest payable, INTREC = interest receivable. Prepare Plentiful's journal entry for December 31, 2015. Debit: Credit: Prepare Plentiful's quarterly adjusting journal entry for March 31, 2016. (HINT: First use the stated terms of the bond to compute the annual coupon payment. Then adjust for one quarter.) Debit: Credit: Assuming plentiful has made appropriate adjusting entries for June 30, September 30, and December 31, prepare plentiful's journal entry for the 1st coupon payment on December 31, 2016. Debit: Credit: How much total interest expense will plentiful record over the 5-year life of the bond
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