On March 1, 2009, Oregon Gas & Electric issued $100 million of 20-year, 9% debentures. Proceeds were $91,420,000, implying a market interest rate of 10%. Show all amounts in thousands of dollars.
1. By using the balance sheet equation format, prepare an analysis of bond transactions. Assume effective interest amortization. Show entries for the issuer concerning
(a) Issuance,
(b) First semiannual interest payment,
(c) Payment of maturity value.
2. Show all the corresponding journal entries for (a), (b), and (c) in requirement 1.
3. Show how the bond-related accounts would appear on the balance sheets as of March 1, 2009, and March 1, 2010. Assume the March 1 interest payment and amortization of bond discount have been made.

  • CreatedFebruary 20, 2015
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