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8
What is the JE for the following bond's issuance? What is the JE for the payment of Interest? What is the JE for its retirement?
Given:
Par value: 1,000,000
Stated Interest Rate: 10%
Market Interest Rate: 10%
Interest Dates: 6/30/2012 and 12/31/2012
Issue date: 1/1/2012
Given:
Par value: 1,000,000
Stated Interest Rate: 10%
Market Interest Rate: 10%
Interest Dates: 6/30/2012 and 12/31/2012
Issue date: 1/1/2012
JE for Issuance:
Jan 1 Cash 1,000,000
Bonds Payable 1,000,000
JE for Payment of Interest
June 30 Bond Interest Exp 50,000
Cash 50,000
1,000,000 x 0.10 x 1/2 (yr) = 50,000
JE for Retirement of Bond
Dec 31 Bonds Payable 1,000,000
Cash 1,000,000
Jan 1 Cash 1,000,000
Bonds Payable 1,000,000
JE for Payment of Interest
June 30 Bond Interest Exp 50,000
Cash 50,000
1,000,000 x 0.10 x 1/2 (yr) = 50,000
JE for Retirement of Bond
Dec 31 Bonds Payable 1,000,000
Cash 1,000,000
Karteninfo:
Autor: savhighsmith
Oberthema: Accounting
Thema: General
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 01.05.2010