Kale Company issued $350,000 of 8%, 20-year bonds on January 1, 2022, at face value. Interest is
Question:
Kale Company issued $350,000 of 8%, 20-year bonds on January 1, 2022, at face value. Interest is payable annually on January 1.
Instructions
Prepare the journal entries to record the following events.
a. The issuance of the bonds.
b. The accrual of interest on December 31, 2022.
c. The payment of interest on January 1, 2023.
d. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Step by Step Answer:
2022 a Jan 1 Cash 350000 Bonds Payable 350000 b Dec31 Interest Expense ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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