Prepare the journal entry for the following bond interest transaction: A company issues $15,000,000, 7.8% (stated...
Prepare the journal entry for the following bond interest transaction:
A company issues $15,000,000, 7.8% (stated rate), 20-year bonds to yield 8% (effective rate) on January 1, 2018. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,108. Using effective-interest amortization, what is the journal entry to record the interest payment on June 30, 2018.
Homework Answers
Journal entry to record the interest on bond is as follows om 30th June 2018
Interest on bond a/c Dr $60,000 i.e. ( $15,00,000*8%*6/12)
To Cash a/c $60,000
Note; Interest would be paid on $15,00,000
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Prepare the journal entry for the following bond interest
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Thanks in advance. Problem 10-8AB Effective Interest: Amortization of bond discount LO P1, P5 Legacy issues...
Thanks in advance.
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On January 1, 2019, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest. (a) Prepare the general journal entry to record the issuance of the bonds on January 1,2019 the company uses the effective interest method of amortization of any discount or premium on bonds. Prepare the June 30, 2019 and the second interest payment on December 31, 2019. general journal entry to record the first semiannual interest payment on Credit Debit Date
On January 1, 2019,...
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Thanks in advance.
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