Recording a Bond with a Discount or Premium a. Sold a bond with a face value...
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Recording a Bond with a Discount or Premium a. Sold a bond with a face value of $10,000,000 for $9,683,000. What is the journal entry to record the bond? b. The bond has a stated rate of 9% and is payable annually. The market rate at issue was 10%. The bonds were issued on April 1, 2016, and the interest is payable on March 30 each year for 4 years. What is the adjusting entry on Dec. 31, 2016? (Hint: do the amortization table first). c. On April 1, 2018, 50% of the Bonds were retired. The bonds were purchased directly from the market at a price of 99. Record the retirement entry. Recording a Bond with a Discount or Premium a. Sold a bond with a face value of $10,000,000 for $9,683,000. What is the journal entry to record the bond? b. The bond has a stated rate of 9% and is payable annually. The market rate at issue was 10%. The bonds were issued on April 1, 2016, and the interest is payable on March 30 each year for 4 years. What is the adjusting entry on Dec. 31, 2016? (Hint: do the amortization table first). c. On April 1, 2018, 50% of the Bonds were retired. The bonds were purchased directly from the market at a price of 99. Record the retirement entry.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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