Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par). It is a ten year issue with interest paid semi-annually and principal due on the maturity date. The issue date is to be July 1st. However the bonds are actually not sold until September 1st. Quaker Company prepares its annual financial statements on October 31st. Required 1: What is the amount of cash received by Quaker Company on September 1st? $ Required 2: What is the amount of interest payable recognized in the books as of October 31st of year 1? $ Required 3: What is the amount of loan payable cancelled in year 10? $

Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par). It is a ten year issue with interest paid semi-annually and principal due on the maturity date. The issue date is to be July 1st. However the bonds are actually not sold until September 1st. Quaker Company prepares its annual financial statements on October 31st. Required 1: What is the amount of cash received by Quaker Company on September 1st? $ Required 2: What is the amount of interest payable recognized in the books as of October 31st of year 1? $ Required 3: What is the amount of loan payable cancelled in year 10? $

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 7MCQ

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