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DD P14-6 (Issuance of Bonds between Interest Dates, Straight-Line, Retirement Presented below are D selected transactions on the books of Simonson Corporation May 1, 2012 Bonds payable with a par value of $900,000, which are dated January 1, 2012, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2022. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued friterest on the bonds, and the amortiza- tion of the proper amount of premiuin. (Use straight-line amortization.) Dec. 31 Jan 1, 2013 April 1 Dec 31 Interest on the bonds is paid. Bonds with par value of $360,000 are called at 102 plus accrued interest, and retired. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Instructions Prepare journal entries for the transactions above.

DD P14-6 (Issuance of Bonds between Interest Dates, Straight-Line, Retirement Presented below are D selected transactions on the books of Simonson Corporation May 1, 2012 Bonds payable with a par value of $900,000, which are dated January 1, 2012, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2022. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued friterest on the bonds, and the amortiza- tion of the proper amount of premiuin. (Use straight-line amortization.) Dec. 31 Jan 1, 2013 April 1 Dec 31 Interest on the bonds is paid. Bonds with par value of $360,000 are called at 102 plus accrued interest, and retired. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Instructions Prepare journal entries for the transactions above.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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DO P14-6 (Issuance of Bonds between Interest Dates, Straight-Line, Retirement Presented below are D selected transactions on the books of Simonson Corporation. May 1, 2012 06 Bonds payable with a par value of $900,000, which are dated January 1, 2012, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2022. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortiza- tion of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Dec. 31 Jan 1, 2013 April 1 Dec 31 Bonds with par value of $360,000 are called at 102 plus accrued interest, and retired. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Instructions Prepare journal entries for the transactions above,
Transcribed Image Text:DO P14-6 (Issuance of Bonds between Interest Dates, Straight-Line, Retirement Presented below are D selected transactions on the books of Simonson Corporation. May 1, 2012 06 Bonds payable with a par value of $900,000, which are dated January 1, 2012, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2022. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortiza- tion of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Dec. 31 Jan 1, 2013 April 1 Dec 31 Bonds with par value of $360,000 are called at 102 plus accrued interest, and retired. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Instructions Prepare journal entries for the transactions above,
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