Solution:
Account | (a) financial statement | (b) Issuance | © Interest Paid |
Bonds Payable | Balance Sheet | $273,000.00 | No Change |
Discount on bond payable | Balance Sheet | $0.00 | No Change |
Interest expense | Income statement | $0.00 | Increase |
Premium on bond payable | Balance Sheet | $57,510.00 | Decrease |
Grocery Corporation received $330,510 for 10.00 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $300,409 for 11.50 percent bonds issued on January 1, 2018, at a market interest rate of 8.50 percent. The bonds had a total face value of $251,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation accounts for the bond using the shortcut approach. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31....
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