Questions 6-7 (of 7) Seve & Exit Submt The following information applies to the

Question

Questions 6-7 (of 7) Seve & Exit Submt The following information applies to the questions displayed below Schitterbahn Watershde Company Issued 25,000, 10-year, 5 percent, $100 bonds on January 1 at face value interest is payable eoch December 31 a) The Issuance of these bonds on January 1 b) The first interest peyment on December 31 Requtred information 6. 10.00 points 1. Indicate the effects of the amounts for the above transactions (Enter any decreases to account balances with a minus sign.) ckholders Equity Liabilities Assets Desktop d82 PM O Type here to search

Explanation / Answer

1) Assets = Liabilities + Stockholder's Equity a Cash 2500000 = Bonds payable 2500000 b Cash -125000 = + interest expense 125000 Date General Journal Debit Credit 1-Jan Cash 2500000 Bonds payable 2500000 31-Dec interest expense 125,000 cash 125,000

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