On January 1, 2017, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable

Question:

On January 1, 2017, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1.


Instructions

Prepare journal entries to record the following.

(a) The issuance of the bonds.

(b) The accrual of interest on December 31, 2017.

(c) The payment of interest on January 1, 2018.

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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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