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MyGateway Home .no xNOOCCO Class Sched x.aastane C Secure https//iedugen uni Pri

ID: 2577461 • Letter: M

Question

MyGateway Home .no xNOOCCO Class Sched x.aastane C Secure https//iedugen uni Print byi Andrew Bae CYPC171 ACCT101 11200: 11200 ACCT 101 C-003 Pinancial Accounting/Ch 10 Part 2 HW Exercise 10-13 Ivanhoe Company issued $430,000 of 10%, 15-year bonds on January 1, 2017, at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not i Date Account Titles and Explanation Jan. 2, 2017Ca 430000 30000 Prepare the journal entry to record the accrual of interest on December 31, 2017, (Credit account titles are automatically indented when amount is Date Account Tities and Explanation Debit Dec. 31, 2017 Jsberest Expense erest Payle Prepare the journal entry to record the payment of interest on January 1, 2018. (Credit account titles are automatically indented when amount ls Date Account Titles and Explanation Debit Credit Jan. 1, 2018 Inberest Payable Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. Date Account Tities and Explanation Debit Credit Jan. 1, 2032

Explanation / Answer

Jan1, 2017 Cash $430000

To bonds payable $430000

Dec 31,2017 Interest expense $43000

To Interest payable $43000

Jan 1,2018 Interest expense $43000

To cash $43000