Question

On January 1, 2014, Victor Corporation sold a $1,400,000, 8 percent bond issue (6 percent market rate).
The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in four 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 straight-line amortization.
3. Show how the bonds payable should be reported on the June 30, 2014, balance sheet and income statement.



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  • CreatedJuly 01, 2014
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