Question: D E Stamps issued the following bonds Date of issue and

D&E Stamps issued the following bonds:
Date of issue and sale.. April 1, 20-1
Principal amount: .... $400,000
Sale price of bonds: ... 100
Denomination of bonds: .. $1,000
Life of bonds: ...... 10 years
Stated rate: ........ 7%, payable semiannually on September 30 and March 31
Prepare journal entries for:
(a) Issuance of the bonds.
(b) Interest payment on the bonds on September 30.
(c) Year-end adjustment on the bonds.

Sale on SolutionInn
  • CreatedJune 07, 2014
  • Files Included
Post your question