The board of directors of Theta Health Spa authorizes the issuance of $450,000 of 10%, 10-year bonds
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Requirements
1. Journalize the following transactions:
(a) Issuance of the bonds on July 31, 2012
(b) Payment of interest on November 30, 2012
(c) Accrual of interest on December 31, 2012
(d) Payment of interest on May 31, 2013
2. Report interest payable and bonds payable as they would appear on the Theta balance sheet at December 31, 2012.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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