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: BE10-12

Answer

Step1: Jan. 1 Cash - 2,970,00 dollars (Debit) Discount on bonds payable - 30,000 dollars (Debit) Bonds payable - 3,000,000 dollars (Credit) Step2: Jan.1 Bonds interest expense - 183,000 dollars (Debit) Discount on bonds payable - 3,000 dollars (Credit) Bonds interest payable - 180,000 dollars (Credit)

Work Step by Step

Step1: To record the sale of bonds at a discount. Step2: To record accrued bond interest and amortization of bonds discount.
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.