Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 10 - Reporting and Analyzing Liabilities - Brief Exercises: BE10-6

Answer

a) 2010 Jan.1 - Cash - 2,000,000 dollars (Debit) Bonds Payable - 2,000,000 dollars (Credit) b) Dec.31 - Bonds interest expense - 140,000 dollars (Debit) Bonds interest payable - 140,000 dollars (Credit) c) 2011 Jan.1 - Bonds interest payable - 140,000 dollars (Debit) Cash - 1400,00 dollars (Credit)

Work Step by Step

a) To record sale of bonds at face value b) To accrue bond interest c) To record payment of bond interest
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.