Question: Problem 15-1A On May 1, 2014, Herron Corp. Issued $310,800, 8%, 5 years bonds at face value. The bonds were dated MAy 1, 2014, and

Problem 15-1A

On May 1, 2014, Herron Corp. Issued $310,800, 8%, 5 years bonds at face value. The bonds were dated MAy 1, 2014, and pay, interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.

a. Prepare the journal entry to record the insurance of the bonds.

b. Prepare the adjusting entry to record the accrual of interest on December 31, 2014.

c. Show the balance sheet presentation on December 31, 2014.

d. Prepare the journal entry to record payment of interest on May 1, 2015, assuming no accrual of interest from January 1, 2015, to May 1, 2015.

e. Prepare the journal entry to record payment of interest on November 1, 2015.

f. Assume the in November 1, 2015, Herron calls the bonds at 103. Record the redemption of the bonds

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