E12-4 (A) through (G)
please answer each
E12-4 A. Journal entry to record sale on 1 Jan, 2004
Cash $5000
Bond payable $5000
B. The bond will be shown at the above recorded amount of $5000 in the liabilities side under Long-term liabilities.
C. Entry to record first coupon payment
Interest on bond $300
Cash/Interest on bonds payable $300
($5000 x 6%) = $ 300
D. Economic value of bond on Dec 31, 2004
Market value of bond on issued = $ 5216.49
E. The bond will be shown at $5000 in liabilities side under Long-term liabilities.
F. The net bond liability on Dec 31, 2008 is $5000.
G. Entry on maturity date of bond
Bond payable $5000
Cash $5000
Note. Assumed that interest on bonds payable is accounted for in "Interest on bonds payable" ledger or paid in cash. It is not added with principal bond liability.
E12-4 (A) through (G) please answer each da bodo interest on and the F12-2 Juary 1...
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