Gabriel Corporation sold $4,000,000, 8 , 10 year bonds on January 1, 2012 The bonds were dated January 1, 2012, and pay interest on July 1 and January 1 Gabriel Corporation uses the straight line method to amortize bond premium or discount Assume no interest is accrued on June 30 Instructions (a) P...

a Jan 1 Cash 4000000 X 103 4120000 Premium on Bonds Payable 120000 Bonds Payable 4000000 July ...

Gabriel Corporation sold $4,000,000, 8%, 10-year bonds on January 1, 2012. The bonds were dated January 1,

Question:

Gabriel sold $4,000,000, 8%, 10-year bonds on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on July 1 and January 1. Gabriel uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.
Instructions
(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2012, assuming that the bonds sold at 103.
(b) Prepare journal entries as in part (a) assuming that the bonds sold at 96.
(c) Show presentation for each bond issue at December 31, 2012.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...