Any accountants on the board, I have a problem that I need help with. Ive been working on it for a couple of hours and cant get it!---I REALLY need this help! either post here, send e-mail to [email protected] or AIM at xlmartinixl
THANKS!
Prepare journal entries for the transactions:
May 1, 2004: Bonds Payable with a par value of $700,000, which are dated Jan 1, 2004 are sold at 106 plus interest. They are coupon bonds, bear interest at 12%(payable annually at Jan 1), and mature Jan 1, 2014. (Use interest expense account for accured interest)
December 31 : Adjusting entries are made to record the accured interest on bonds, and the amortization of the proper amount of premium (use streaight-line amortization)
April 1: Bonds of par value of $420,000 are purchased at 102 plus accured interest, and retired. (Bond premium is to be amortized only at the end of each year)
December 31: Adjusting entries are made to record the accured interest on the bonds, and the proper amount of premium amortized.
THANKS!
Prepare journal entries for the transactions:
May 1, 2004: Bonds Payable with a par value of $700,000, which are dated Jan 1, 2004 are sold at 106 plus interest. They are coupon bonds, bear interest at 12%(payable annually at Jan 1), and mature Jan 1, 2014. (Use interest expense account for accured interest)
December 31 : Adjusting entries are made to record the accured interest on bonds, and the amortization of the proper amount of premium (use streaight-line amortization)
April 1: Bonds of par value of $420,000 are purchased at 102 plus accured interest, and retired. (Bond premium is to be amortized only at the end of each year)
December 31: Adjusting entries are made to record the accured interest on the bonds, and the proper amount of premium amortized.
