On March 1,2009,Sklar Corporation issued bonds with a face value of $400,000.The bonds carry a face interest rate of 12 percent that is payable each June 30 and December 31.The bonds were sold at 100.The corporation's accounting year ends on December 31.
a. Prepare an entry in journal form without explanation to record the issuance of the bonds on March 1, 2009.
b. Prepare an entry in journal form without explanation to record the interest payment on June 30, 2009.
c. Prepare an entry in journal form without explanation to record the interest payment on December 31, 2009.

d. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2009. Show your calculations.
e. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2010. Show your calculations.

Question

On March 1,2009,Sklar Corporation issued bonds with a face value of $400,000.The bonds carry a face interest rate of 12 percent that is payable each June 30 and December 31.The bonds were sold at 100.The corporation's accounting year ends on December 31.
a. Prepare an entry in journal form without explanation to record the issuance of the bonds on March 1, 2009.
b. Prepare an entry in journal form without explanation to record the interest payment on June 30, 2009.
c. Prepare an entry in journal form without explanation to record the interest payment on December 31, 2009.
  
d. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2009. Show your calculations.
e. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2010. Show your calculations.

Quizplus · Accepted Answer

The Answer of On March 1,2009,Sklar Corporation issued bonds with a face value of $400,000.The bonds carry a face interest rate of 12 percent that is payable each June 30 and December 31.The bonds were sold at 100.The corporation's accounting year ends on December 31.
a. Prepare an entry in journal form without explanation to record the issuance of the bonds on March 1, 2009.
b. Prepare an entry in journal form without explanation to record the interest payment on June 30, 2009.
c. Prepare an entry in journal form without explanation to record the interest payment on December 31, 2009.
  
d. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2009. Show your calculations.
e. Calculate the amount that should appear for Bond Interest Expense on Sklar's income statement for the year ended December 31, 2010. Show your calculations.

On March 1,2009,Sklar Corporation Issued Bonds with a Face Value