ACCO 112- WK 6 assignment E15-4B Mendez Company issued $800,000 of 9%, 10-year b

Question

ACCO 112- WK 6 assignment E15-4B Mendez Company issued $800,000 of 9%, 10-year bonds on January 1, 2016, at face value. Interest is payable annually on January 1 Instructions Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The accrual of interest on December 31, 2016. (c) The payment of interest on January 1, 2017. (d) The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded. E15-68 Martin Com pany issued $400,000 of 5-year, 6% bonds at 97 on January 1, 2017. The bonds pay interest annually Instructions (a) (1) Prepare the journal entry to record the issuance of the bonds. (b) Repeat the requirements from part (a), assuming the bonds were issued at 105.

Explanation / Answer

Solution : 4B

6B

Date Account / Explanation Debit Credit (a)01 Jan 2016 Cash. Dr $800,000 To Bonds payable $800,000 (b)31 Dec 2016 Interest expense Dr $72,000* To interest payable $72,000 (*800,000 x 9% = 72,000) (c)01 Jan 2017 interest payable Dr $72,000 To cash $72,000 (d) Bonds payable Dr $800,000 To cash $800,000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.