Clarity Communication issued $42,000 of 8%, 10-year bonds payable on October 1, 2012, at par value. Claritys

Question:

Clarity Communication issued $42,000 of 8%, 10-year bonds payable on October 1, 2012, at par value. Clarity’s accounting year ends on December 31.

Requirements

1. Journalize the issuance of the bonds on October 1, 2012.

2. Journalize the accrual of interest expense on December 31, 2012.

3. Journalize the payment of the first semiannual interest amount on April 1, 2013.

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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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Question Posted: Dec 16, 2011 05:54 AM

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Clarity Communication issued $42,000 of 8%, 10-year bonds payable on October 1, 2012, at par value. Claritys

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Financial and Managerial Accounting

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