Thunder Bay Parts Corporation (TBPC) has a fiscal year ending on April 30 To finance expansion, TBPC sold $12,000,000 of 4 , five year bonds at face value plus accrued interest on June 1, 2014 Interest on the bonds is payable semiannually on June 30 and December 31 a Journalize the entries to recor...

a 1 June 1 Cash 1220000000 Bonds Payable 1200000000 Interest Payable 200 ...

Thunder Bay Parts Corporation (TBPC) has a fiscal year ending on April 30. To finance expansion, TBPC

Question:

Thunder Bay Parts (TBPC) has a fiscal year ending on April 30. To finance expansion, TBPC sold $12,000,000 of 4%, five-year bonds at plus accrued interest on June 1, 2014. Interest on the bonds is payable semiannually on June 30 and December 31.
a. Journalize the entries to record the following:
1. Sale of the bonds.
2. First semiannual interest payment.
3. Second semiannual interest payment.
4. Adjusting entry for interest at year-end.
b. Determine the amount of the bond interest expense for the year ended April 30, 2015.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...