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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 22
Journalizing bond issuance and interest payments
On May 1, 2012, Noah Unlimited issues 9%, 20-year bonds payable with a maturity value of $200,000. The bonds sell at 103 and pay interest on May 1 and November 1. Noah Unlimited amortizes bond premium by the straight-line method.
Requirements
1. Journalize the issuance of the bonds on May 1, 2012.
2. Journalize the semiannual interest payment and amortization of bond premium on November 1, 2012.
3. Journalize the interest accrual needed on December 31, 2012. 4. Journalize the interest payment on May 1, 2013.
On May 1, 2012, Noah Unlimited issues 9%, 20-year bonds payable with a maturity value of $200,000. The bonds sell at 103 and pay interest on May 1 and November 1. Noah Unlimited amortizes bond premium by the straight-line method.
Requirements
1. Journalize the issuance of the bonds on May 1, 2012.
2. Journalize the semiannual interest payment and amortization of bond premium on November 1, 2012.
3. Journalize the interest accrual needed on December 31, 2012. 4. Journalize the interest payment on May 1, 2013.
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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