Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

تمرين 15

Journalizing and reporting bond transactions
The board of directors of Theta Health Spa authorizes the issuance of $450,000 of 10%, 10-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on July 31, 2012, at par plus accrued interest.
Requirements
1. Journalize the following transactions:
a. Issuance of the bonds on July 31, 201.2.
b. Payment of interest on November 30, 2012.
c. Accrual of interest on December 31, 2012.
d. Payment of interest on May 31, 2013.
2. Report interest payable and bonds payable as they would appear on the Theta balance sheet at December 31, 2012.