On October 1, 2018, Spooner Corporation issued $ 980,000 of 10-year, 4% bonds at 100. Interest...

 

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On October 1, 2018, Spooner Corporation issued $ 980,000 of 10-year, 4% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October L2018 2. The accrual of interest on December 31.201a 2 The payment of interest on April 1. 2019, Date Account Tides and Kxplanatien Deti Cred O 1,200 De 3. 2018 Apr 1. 209 eTextbook and Media List of Accounts Identify what amounts, if any, would be reported as a current liability and non- current liability with respect to the bond and bond interest accounts on December 31, 2018. (Round answers to the nearest whole dollar, es. 5,275) Spooner Corporation Statement of Financial Position (Partial) December 31, 2018 On October 1, 2018, Spooner Corporation issued $ 980,000 of 10-year, 4% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Spooner's year end is December 31 and the company records adjusting entries annually. Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) 1. The issue of the bonds on October L2018 2. The accrual of interest on December 31.201a 2 The payment of interest on April 1. 2019, Date Account Tides and Kxplanatien Deti Cred O 1,200 De 3. 2018 Apr 1. 209 eTextbook and Media List of Accounts Identify what amounts, if any, would be reported as a current liability and non- current liability with respect to the bond and bond interest accounts on December 31, 2018. (Round answers to the nearest whole dollar, es. 5,275) Spooner Corporation Statement of Financial Position (Partial) December 31, 2018

Answer rating: 100% (QA)

Ans 3 Journal entires In the books of Spooner corporation Date Account head Debit Credit 2... View the full answer