Question: Simon Corporation issued 3%, 20-year bonds payable with a maturity value of $710,000 on May 31 . The bonds were issued at par and pay

Simon Corporation issued 3%, 20-year bonds payable with a maturity value of $710,000 on May 31 . The bonds were issued at par and pay interest on May 31 and November 30.

Requirements
1. Record the issuance of the bonds on May 31.
2. Record the payment of interest on November 30, and accrual of interest on December 31.

Step by Step Solution

★★★★★

3.36 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Journal DATE ACCOUNTS POST REF Dr Cr a May 31 Cash 710000 B... 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 (3864).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

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...

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...

Accounting for bonds (Learning Objective 5) 1520 min. Minnie Corporation issued 3%, 20-year bonds payable with a maturity value of $590,000 on January 31. The bonds were issued at par and pay...

Minnie Corporation issued 3%, 20-year bonds payable with a maturity value of $590,000 on January 31 . The bonds were issued at par and pay interest on January 31 and July 31. Record (a) Issuance of...

Daffy Corporation issued 4%, 20-year bonds payable with a maturity value of $330,000 on January 31. The bonds were issued at par and pay interest on January 31 and July 31. Record (a) Issuance of the...

Pluto Corporation issued 8%, 20-year bonds payable with a maturity value of $500,000 on March 31. The bonds were issued at par and pay interest on March 31 and September 30. Record (a) Issuance of...

Corporation issued percent, 20-year bonds payable with a maturity value of on . The bonds were issued at par and pay interest on and . Record (a) issuance of the bonds on , (b) payment of interest on...

7 of 7 (0 complete) HW Score: 0%, 0 of 100 pts core: 0 of 20 pts E9-19A (similar to) en Question Help On January 1, 2017, Bronson Corporation issued five-year, 6% bonds payable with a face value of...

On January 1, 2017, Kittle Corporation issued five-year, 4% bonds payable with a face value of $2,500,000. The bonds were issued at 95 and pay interest on January 1 and July 1. Kittle amortizes bond...

A local pharmacy orders 15 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The pharmacy purchases the magazines for $2.25 and sells them for $5.00. Any...

Design a modulo 6 counter using D flip flops. Please note that unused state should not be consider as don\\\'t care. 1) State diagram 2) State table aka state transition table 3) Kmaps for next state...

16.78 CHALLENGE More on social distress and brain activity. Use the bootstrap to obtain a 95% confidence interval for the correlation in the population of all similar subjects from the data in the...

Which of the following are advantages that might emerge from a process of shared learning? (Several choices may be correct.) A. Challenge and structured critical reflection from different...

Errors in accounting for long-term assets (Learning Objectives 3 & 4) 1520 min. On January 1 of year 1, Ramsco, Inc., purchased equipment at a cost of $85,000. Management expects the equipment to...

Capitalized costs for long-term assets (Learning Objective 2) 1015 min. Sunshine Tanning Salon bought three tanning beds in a $13,000 lump-sum purchase. An independent appraiser valued the tanning...

Capitalized costs for long-term assets (Learning Objective 2) 1015 min. Ramirez Transfer manufactures conveyor belts. Early in August 2015, Ramirez Transfer constructed its own building at a...

Homework: Chapter 9... Question 2, Problem 9-2 HW Score: 0%, 0 of 7 points O Points: 0 of 1 Save Daily Enterprises is purchasing a $10.3 milion machine. It will cost $51,000 to transport and install...

PLEASE SHOW WORK You currently hold 100 shares of Citigroup common stock in your taxable brokerage account. You plan to sell your stock simply because you believe that this stock no longer suits the...

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an...