Question: Two independent situations follow 1 On January 1 2011 Divac

Two independent situations follow:
1. On January 1, 2011, Divac Limited issued $300,000 of 10-year, 9% bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.
2. On June 1, 2011, Verbitsky Inc. issued at par, plus accrued interest, $200,000 of 10-year, 12% bonds dated January 1. Interest is payable semi-annually on July 1 and January 1.
Instructions
For each of these two independent situations, prepare journal entries to record:
(a) The issuance of the bonds
(b) The payment of interest on July 1
(c) The accrual of interest on December 31

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  • CreatedAugust 23, 2015
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