Question

On January 1, 2014, Frog Corporation sold a $2,000,000, 10 percent bond issue (8.5 percent market rate).
The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in 10 years.

Required:
1. Give the journal entry to record the issuance of the bonds.
2. Give the journal entry to record the interest payment on June 30, 2014. Use effective-interest amortization.
3. Show how the bonds payable should be reported on the June 30, 2014, financial statements.



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  • CreatedJuly 01, 2014
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