Caron Industries received authorization on December 31, 2014, to issue $7,000,000 face value of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, 2015. The bonds are callable by Caron at any time at 102.
REQUIRED:
Identify the accounting equation effects of the transaction to record the issuance of bonds on April 1, 2015.
Apr. 1,

Question

Quizplus · Accepted Answer

The Answer of Caron Industries received authorization on December 31, 2014, to issue $7,000,000 face value of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, 2015. The bonds are callable by Caron at any time at 102.
REQUIRED:
Identify the accounting equation effects of the transaction to record the issuance of bonds on April 1, 2015.
Apr. 1,

Caron Industries Received Authorization on December 31, 2014, to Issue