1. Journalize the following transactions of Laporte Communications, Inc.: 2. At December 31, 2018, after all year-end...
Question:
1. Journalize the following transactions of Laporte Communications, Inc.:
2. At December 31, 2018, after all year-end adjustments have been made, determine the carrying amount of Laporte’s bonds payable, net.
3. For the six months ended July 1, 2018, determine the following for Laporte:
a. Interest expense
b. Cash interest paid
What causes interest expense on the bonds to exceed cash interest paid?
Transcribed Image Text:
2018 Jan 1 Issued $4,000,000 of 7%, 10-year bonds payable at 94. Interest payment dates are July 1 and January 1. Jul Paid semiannual interest and amortized bond discount by the straight-line method on the 7% bonds payable. 1 Dec 31 Accrued semiannual interest expense and amortized the bond discount by the straight-line method on the 7% bonds payable. 2019 Jan 1 Paid semiannual interest. 2028 Jan 1 Paid the 7% bonds at maturity.
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1 Journal Entries Jan 1 2018 Cash 3760000 Discount on Bonds Payable 240000 Bonds Payable 4000000 To ...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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