Using the bond from Exercise 14-11 show the reporting of the bond on the balance sheet at
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In Exercise 14-11
Gary Corporation wholesales bike parts to bicycle manufacturers. On March 1, 2015, the first day of its first fiscal year, Gary Corporation issued $8,000,000 of five-year, 7% bonds at an effective interest rate of 6%, receiving cash of $8,341,208.11. Interest is payable semiannually on March 1 and September 1, and the company uses the effective interest method for bond premium amortization. Gary Corporation has a January 31 year-end.
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... 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...
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Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
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