Maurice Tutor

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Category > Accounting Posted 26 Jul 2017 My Price 4.00

Paul Simon Company

E14-3 (Entries for Bond Transactions) Presented below are two independent situations.

1.) On January 1. 2008, Paul Simon Company issued $200,000 of 9%. 10-year bonds dated June 1 at par. Interest quarterly on April 1, July 1, October 1 and January 1.
2.) On January 1, 2008, Graceland Company issued $100,000 of 12%, 10-year bonds dated June 1 at par. Interest is payable semiannually on July 1 and January 1.

Instructions
For each of these two independent situations, prepare journal entries to record:
a.) The issuance of bonds
b.) The payment of interest on July 1
c.) The accrual of interest on December 31

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 12:07 PM My Price 4.00

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