Journal
Oct. 1, 2018 | Cash | 660,000 | |
Bonds payable | 660,000 | ||
Dec. 31, 2018 | Interest payable | 9,900 | |
Interest expense | 9,900 | ||
April 1, 2019 | Interest expense | 9,900 | |
Interest payable | 9,900 | ||
Cash | 19,800 |
Interest accrued on December 31, 2018 = 660,000 x 6% x 3/12
= $9,900
Interest expense to be recorded on April 1, 2019 = 660,000 x 6% x 3/12
= $9,900
Statement of financial position
December 31, 2018
Current liabilities | |
Interest payable | 9,900 |
Long term liabilities | |
Bonds payable | 660,000 |
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Exercise 10-12 On October 1, 2018, Spooner Corporation issued $660,000 of 10-year, 6% bonds at 100....
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