Stone Corporation issued 2,900 7%, 5-year, P1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (c) Prepare the journal entry on January 1, 2018, to record interest paid.
Stone Corporation issued 2,900 7%, 5-year, P1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (c) Prepare the journal entry on January 1, 2018, to record interest paid.
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
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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