Waterbahn Waterslide Company issued 25,000 ten-year, 6 percent, $100 bonds on January 1, 2017, at face value.
Question:
Waterbahn Waterslide Company issued 25,000 ten-year, 6 percent, $100 bonds on January 1, 2017, at face value. Interest is payable each December 31. Show the accounting equation effects and prepare journal entries for
(a) The issuance of these bonds on January 1, 2017,
(b) The interest payment on December 31, 2017.
Step by Step Answer:
a January 1 2017 dr Cash A 2500000 cr Bonds Payable L 2500000 b December 31 2017 ...View the full answer
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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