Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par).

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Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par). It is a ten year issue with interest paid semi-annually and principal due on the maturity date. The issue date is to be July 1st. However the bonds are actually not sold until September 1st. Quaker Company prepares its annual financial statements on October 31st.

Required 1: What is the amount of cash received by Quaker Company on September 1st? $

Required 2: What is the amount of interest payable recognized in the books as of October 31st of year 1? $

Required 3: What is the amount of loan payable cancelled in year 10? $

Related Book For answer-question

Financial Accounting: A Business Process Approach

ISBN: 978-0136115274

3rd edition

Authors: Jane L. Reimers

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Posted Date: Apr 22, 2024 08:42 PM

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Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par).

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Expert Answer:

Lets break down each requirement step by step 1 The bond issue is for 71400 at 5 interest paid semia... View the full answer

Financial Accounting: A Business Process Approach

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