Cornerstone Exercise 9-26 Debt Issued at Par
On January 1, 2019, Brock & Co. issued S600,000 of bonds payable at par. The bonds have a 9% stated rate, pay interest on March 31, June 30, September 30, and December 31, and mature on December 31, 2019,
Required:
Prepare the journal entries to record the interest payment on June 30, 2019.
Use the following information for Cornerstone Exercises 9-27 and 9-28:
On January 1, 2020, Drew Company issued S350,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31.
Concept introduction:
Bonds:
Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at a specified rate of interest and for a specified time period. The bondholders get a fixed rate of interest on the bonds and repayment of the bonds at the maturity date. Bonds may be issued at a premium or discount.
To prepare:
The Journal entry to record the interest payment on Bonds.
The Journal entry to record the interest payment on Bonds is explained as follows:
Journal Entries | |||
Date | Account Titles | Debit | Credit |
June... |
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