Part I
FWP Co.issued $100,000,10-year bonds on January 1,2013.The stated rate of interest on the bonds is 10% payable annually on 12/31.Provide the requested information for the bonds immediately after issuance (January 1,2013)under each of the three independent scenarios described below: Part II
On January 1,2014,FWP sells $2 million of 8% bonds at face value with interest to be paid at the end of each year.Prepare the journal entries on the following dates:
a)January 1,2014 (the initial bond sale).
b)March 31,2014 (the end of the first quarter).
c)December 31,2014 (the payment of interest at the end of the year;assume that the interest owed for each of the first three quarters has been properly accrued).

Question

Part I
FWP Co.issued $100,000,10-year bonds on January 1,2013.The stated rate of interest on the bonds is 10% payable annually on 12/31.Provide the requested information for the bonds immediately after issuance (January 1,2013)under each of the three independent scenarios described below:  Part II
On January 1,2014,FWP sells $2 million of 8% bonds at face value with interest to be paid at the end of each year.Prepare the journal entries on the following dates:
a)January 1,2014 (the initial bond sale).
b)March 31,2014 (the end of the first quarter).
c)December 31,2014 (the payment of interest at the end of the year;assume that the interest owed for each of the first three quarters has been properly accrued).

Quizplus · Accepted Answer

The Answer of Part I
FWP Co.issued $100,000,10-year bonds on January 1,2013.The stated rate of interest on the bonds is 10% payable annually on 12/31.Provide the requested information for the bonds immediately after issuance (January 1,2013)under each of the three independent scenarios described below:  Part II
On January 1,2014,FWP sells $2 million of 8% bonds at face value with interest to be paid at the end of each year.Prepare the journal entries on the following dates:
a)January 1,2014 (the initial bond sale).
b)March 31,2014 (the end of the first quarter).
c)December 31,2014 (the payment of interest at the end of the year;assume that the interest owed for each of the first three quarters has been properly accrued).

Part I FWP Co.issued $100,000,10-Year Bonds on January 1,2013.The Stated Rate of Rate