(Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2017 Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1 and January 1 2. On June 1, 2017, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest interest is payable semiannually on July 1 and January 1. Instructions: For each of these two independent situations, prepare journal entries to record the following: 1) The issuance of the bonds 2) The payment of interest on July 1 3) The accrual of interest on December 31
(Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2017 Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1 and January 1 2. On June 1, 2017, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest interest is payable semiannually on July 1 and January 1. Instructions: For each of these two independent situations, prepare journal entries to record the following: 1) The issuance of the bonds 2) The payment of interest on July 1 3) The accrual of interest on December 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Entries for Bond Transactions) Presented below are two independent situations.
1. On January 1, 2017 Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1 and January 1
2. On June 1, 2017, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest interest is payable semiannually on July 1 and January 1.
Instructions: For each of these two independent situations, prepare
1) The issuance of the bonds
2) The payment of interest on July 1
3) The accrual of interest on December 31
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