On 1/1/20, Kesher Corp issued 10 year, 10N $500,000 face value bonds at an effective interest raté ôf 12%. Ikteret payment dates are 6/30 and 12/31 of each year. Kesher uses the effective interest method. On 2/28/21, Kesher retired the bonds at 90 plus accrued interest. Make the necessary entries on the books of Kesher on 1/1/20, 6/30/20, 12/31/20 and 2/28/21. Show supporting computations. (See time value of money tables attached at the end of the exam.) JOURNAL ENTRIES Accounts Debit Credit Date 1/2/20 6/30/20 12/30/20

On 1/1/20, Kesher Corp issued 10 year, 10N $500,000 face value bonds at an effective interest raté ôf 12%. Ikteret payment dates are 6/30 and 12/31 of each year. Kesher uses the effective interest method. On 2/28/21, Kesher retired the bonds at 90 plus accrued interest. Make the necessary entries on the books of Kesher on 1/1/20, 6/30/20, 12/31/20 and 2/28/21. Show supporting computations. (See time value of money tables attached at the end of the exam.) JOURNAL ENTRIES Accounts Debit Credit Date 1/2/20 6/30/20 12/30/20

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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