Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Journalizing bond issuance and interest payments On June 30, Parker Company issues 11%, five-year bonds payable with a face value of $120,000. The bonds are issued at face value and pay interest on June 30 and December 31. Requirements Journalize the issuance of the bonds on June 30. Journalize the semiannual interest payment on December 31.
Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Journalizing bond issuance and interest payments On June 30, Parker Company issues 11%, five-year bonds payable with a face value of $120,000. The bonds are issued at face value and pay interest on June 30 and December 31. Requirements Journalize the issuance of the bonds on June 30. Journalize the semiannual interest payment on December 31.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSB
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Assume bonds payable are amortized using the
Journalizing bond issuance and interest payments
On June 30, Parker Company issues 11%, five-year bonds payable with a face value of $120,000. The bonds are issued at face value and pay interest on June 30 and December 31.
Requirements
- Journalize the issuance of the bonds on June 30.
- Journalize the semiannual interest payment on December 31.
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