Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at $9,777,000 cash when the market rate for this bond is 12% Required: Prepare the general journal entry to record the issuance of the bonds on January 1, 2005. Assume that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2005. JOURNAL DATE DEBIT CREDIT a) JAN. 1,2005 b) JUNE 30
Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at $9,777,000 cash when the market rate for this bond is 12% Required: Prepare the general journal entry to record the issuance of the bonds on January 1, 2005. Assume that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2005. JOURNAL DATE DEBIT CREDIT a) JAN. 1,2005 b) JUNE 30
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 15MCQ
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Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at $9,777,000 cash when the market rate for this bond is 12%
Required:
- Prepare the general
journal entry to record the issuance of the bonds on January 1, 2005. - Assume that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2005.
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b) JUNE 30 |
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