On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue wasdated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at facevalue.a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds.b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interestpayment.

On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue wasdated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at facevalue.a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds.b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interestpayment.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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