xd Prepare the journal entry to re x t secure edugen.wileyplus.com/edugen/Iti/ma

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xd Prepare the journal entry to re x t secure edugen.wileyplus.com/edugen/Iti/main.uni Return to Blackboard Weygandt, Accounting Principles, 12e signment TER VERSTON 4 BACK NEXT CES Problem 15-3A (Part Level Submission) The following section is taken from Mareska's balance sheet at December 31, 2017. Current liabilities Interest payable $37,500 Long-term liabilities Bonds payable (8%, due January 1, 2021) 540,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. tudy Y (a) Your answer is correct. Journalize the payment of the bond interest on January 1, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2018 [interest Payable 37 Cash ANSWER Version 4.24.9

Explanation / Answer

as on Dec 31 2017 Bonds Payable =540000

as on Jan 1 2018 bonds call = 190000

Balance bonds of face value = 350000 ( Jan 1, 2018)

So on Dec 31 Interest payable entry

Interest Exp A/c Dr 28000

To Interest Payable 28000

( 350000 * 8/100 = 28000 )

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