Sealon Corporation issued $100,000 of 10%, 10-year bonds at 102 on April 1, 2012. Interest is payable
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Sealon Corporation issued $100,000 of 10%, 10-year bonds at 102 on April 1, 2012. Interest is payable semiannually on April 1 and October 1. Sealon Corporation uses the calendar year for financial reporting.
1. Record the necessary entries to account for these bonds on the following three dates. (Use the straight-line method to amortize the bond premium.)
a. April 1, 2012
b. October 1, 2012
c. December 31, 2012
2. Show how the bonds would be reported on the balance sheet of Sealon Corporation on
December 31, 2012.
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...
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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