On 01-01-15, B issued $3,000,000 of 3.5%, 5-year term bonds. The bonds pay interest every July 1 and January 1. At the time B issued the bonds, similar bonds paid 3%. Upon issuing the bonds, B incurred and paid $27,000 of bond issuance costs. B uses the effective-interest method to amortize any bond discount or premium. B only prepares AJEs every December 31. Prepare the entries B should make on: 01-01-15 07-01-15 12-31-15 01-01-16
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
On 01-01-15, B issued $3,000,000 of 3.5%, 5-year term bonds. The bonds pay interest every July 1 and January 1. At the time B issued the bonds, similar bonds paid 3%. Upon issuing the bonds, B incurred and paid $27,000 of bond issuance costs. B uses the effective-interest method to amortize any bond discount or premium. B only prepares AJEs every December 31. Prepare the entries B should make on:
- 01-01-15
- 07-01-15
- 12-31-15
- 01-01-16
Bonds are long-term promissory notes that are represented by a company while borrowing money from investors to raise fund for financing the operations.
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