Question: Apex, Corp., issued 14%, five-year bonds payable with a maturity value of $45,000 at par on May 1, 2012. Assume that the fiscal year ends

Apex, Corp., issued 14%, five-year bonds payable with a maturity value of $45,000 at par on May 1, 2012. Assume that the fiscal year ends on December 31. Journalize the following transactions and include an explanation for each entry.

a. Issuance of the bonds payable on May 1, 2012.

b. Payment of the first semiannual interest amount on November 1, 2012.

c. Accrual of interest expense on December 31, 2012.

Step by Step Solution

★★★★★

3.38 Rating (170 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Journal DATE ACCOUNTS POST REF Dr Cr 2012 a May 1 Cash 45000 Bonds P... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

292-B-A-L (3845).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

The company has outstanding bonds payable with a total face value of $100,000. On July 1, the company redeemed the bonds by purchasing them on the open market for a total of $102,700. Make the...

The company has bonds payable with a total face value of $100,000 and a carrying value of $103,000. In addition, unpaid interest on the bonds has been accrued in the amount of $6,000. The lender has...

Presented below are selected transactions on the books of Simonson Corporation. May 1, 2014 - Bonds payable with a par value of $900,000, which are dated January 1, 2014 are sold at 106 plus accrued...

Accounting for bonds (Learning Objective 5) 1520 min. Allied, Corp., issued 8%, five-year bonds payable with a maturity value of $50,000 at par on May 1, 2014. Assume that the fiscal year ends on...

Hastings, Corp. issued 6%, five-year bonds payable with a maturity value of $5,000 at par on May 1, 2014. Assume that the fiscal year ends on December 31. Journalize the following transactions and...

Hastings, Corp., issued 6%, five-year bonds payable with a maturity value of $5,000 at par on May 1, 2010. Assume that the fiscal year ends on December 31. Journalize the following transactions and...

Willow Corp. issued at par 5.5 percent, five-year bonds payable with a maturity value of $24,000 on May 1, 2018. Assume the fiscal year ends December 31. Journalize the following transactions and...

Basting Corp. issued at par 6 percent, five-year bonds payable with a maturity value of $10,000 on May 1, 2018. Assume the fiscal year ends December 31. Journalize the following transactions and...

Allied Corp. issued at par 8 percent, five-year bonds payable with a maturity value of $50,000 on May 1, 2018. Assume the fiscal year ends December 31. Journalize the following transactions and...

Help answer all parts asap please! Assume that on March 1. 2018, Easter Corp, bswes 6 percent, 10-yoar bonds payable with a maturity valve of $900,000. The bonds pay interest on February 28 and...

Dewayne Hubbert, Elden Craft, Chris Grout, and Rhonda Byington bought computers from Dell Corp. through its Web site. Before buying, Hubbert and the others configured their own computers. To make a...

The museum was located in a large city block containing a variety of stores. in late July 1992, a fire that started in one of these stores burned the entire block, including the museum. Fortunately,...

If the company's return on equity is 1 8 % and the industry average is 1 5 % , the company's return on equity ratio is Blank _ _ _ _ _ _ the industry average. Multiple choice question. worse than...

Which of these is NOT a typical motivation for a strategic alliance? A. Build critical mass through cooption B. Differentiate existing products and services C. Enter new markets through cospecialized...

Quick ratio and current ratio (Learning Objective 7) 1520 min. Consider the following data: Cash................................................ Short-term Investments.................. Net...

Quick ratio, current ratio, and accounts receivable turnover (Learning Objective 7) 1520 min. Cherokee Equipment reported the following items on December 31, 2014 (amounts in thousands, with last...

Direct write-off method (Learning Objective 4) 510 min. Fesler Industries uses the direct write-off method to account for bad debts. Record the following transactions that occurred during the year:...

A small town in Ohio is considering the purchase of a new parking system that would enhance the collection of parking fees while providing additional convenience to shoppers. The hardware requires an...

TSLA4007901 TSLA4103350 TSLA4103351 Total Coupon Rate 1.50% 0.25% 1.25% Last Trade Price $168.30 $85 $81.44 Cost of Debt (Coupon amount / current market price) 0.89% 0.29% 1.54% Outstanding Book...

Which of the following statements is CORRECT? Answer Any forecast of financial requirements involves determining how much money the firm will need, and this need is determined by adding together...