3
answers
0
watching
153
views
olivepug595Lv1
28 Sep 2019
BONDS On January 1, 2016, Lagune& Sons issued 9% bonds dated January 1, 2016, with a faceamount of $200,000. The bonds sold for $182,841 and mature in 20years. The effective interest rate for these bonds was 10%.Interest is paid semiannually on July 1 and December 31. Lagune'sfiscal year is the calendar year.
REQUIRED:
1. Prepare the journal entryto record the bond issuance on January 1, 2016. 2. Prepare the entry to record interest onJuly 1, 2016, using the effective interest method. 3. Prepare the necessary journal entry onDecember 31, 2016. 4. Prepare the entry to record interest onJuly 1, 2016, using the straight-line method. 5. Prepare the necessary journal entry onDecember 31, 2016 using the straight-line methods.
BONDS |
On January 1, 2016, Lagune& Sons issued 9% bonds dated January 1, 2016, with a faceamount of $200,000. The bonds sold for $182,841 and mature in 20years. The effective interest rate for these bonds was 10%.Interest is paid semiannually on July 1 and December 31. Lagune'sfiscal year is the calendar year. |
REQUIRED:
1. Prepare the journal entryto record the bond issuance on January 1, 2016. |
2. Prepare the entry to record interest onJuly 1, 2016, using the effective interest method. |
3. Prepare the necessary journal entry onDecember 31, 2016. |
4. Prepare the entry to record interest onJuly 1, 2016, using the straight-line method. |
5. Prepare the necessary journal entry onDecember 31, 2016 using the straight-line methods. |
jeylam2666Lv10
27 Mar 2022
shitalbhusare12Lv10
27 Mar 2022
Already have an account? Log in
Jamar FerryLv2
28 Sep 2019
Already have an account? Log in