dispensary Borrowed $360,000 on January 2 ,2016, by issuing a 10% serial bond payable that must...
dispensary Borrowed $360,000 on January 2 ,2016, by issuing a 10% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2 , 2017. Complete the missing information. Assume bonds are issued at face value. ( for accounts with a $0 balance make sure to enter "0" in the appropriate cell)
| 2016 | 2017 | 2018 | ||
| Current Liab | ||||
| Bonds payable | ||||
| Interest payable | ||||
| Long term Liab | ||||
| Bonds payable |
Homework Answers
| Amount $ | |||||
| 2016 | 2017 | 2018 | |||
| Current Liab | |||||
| Bonds payable | 120,000 | 120,000 | 120,000 | ||
| Interest payable | 36,000 | 24,000 | 12,000 | ||
| Long term Liab | |||||
| Bonds payable | 240,000 | 120,000 | - | ||
| Workings: | |||||
| 2016 | 2017 | 2018 | |||
| Current Liab | |||||
| Bonds payable | =360000/3 | =360000/3 | =360000/3 | ||
| Interest payable | =360000*10% | =240000*10% | =120000*10% | ||
| Long term Liab | |||||
| Bonds payable | =360000-120000 | =240000-120000 | =120000-120000 | ||
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dispensary Borrowed $360,000 on January 2 ,2016, by issuing a
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$5,049,260 Prepare the calculations and journal entries to record
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