The board of directors of Media Plus authorizes the issue of $8,000,000 of 7%, twenty-year bonds payable. The semi-annual interest dates are May 31 and November 30. The bonds are issued on May 31, 20X0, at par.Requirements1.Journalize the following transactions:a. Issuance of half of the bonds on May 31, 20XO.b. Payment of interest on November 30, 20XO.c. Accrual of interest on December 31, 20X0.d. Payment of interest on May 31 , 20X1.Report interest payable and bonds payable as they would appear on the Media Plus balance sheet at December 31, 20xo.2.Requirement 1. Journalize the transactions a through d. (Record debits first, then credits. Explanations are not required. Round all amounts to the nearest whole dollar.)a. Issuance of half of the bonds on May 31, 20X0.Journal EntryDateAccountsDebitCreditMay31

Half amount of bonds=Authorized bonds2=$8,000,0002=$4,000,000

The board of directors of Media Plus authorizes the issue of $8,000,000 of 7%, twenty-year bonds payable. The semi-annual interest dates are May 31 and November 30. The bonds are issued on May 31, 20X0, at par Requirements Journalize the following transactions: a. Issuance of half of the bonds on May 31, 20xO. 1. b. Payment of interest on November 30, 20X0. c. Accrual of interest on December 31, 20X0. d. Payment of interest on May 31, 20X1. 2. Report interest payable and bonds payable as they would appear on the Media Plus balance sheet at December 31, 20X0. Requirement 1. Journalize the transactions a through d. (Record debits first, then credits. Explanations are not required. Round all amounts to the nearest whole dollar.) a. Issuance of half of the bonds on May 31, 20Xo. Journal Entry Date Accounts Debit Credit May 31

The board of directors of Media Plus authorizes the issue of $8,000,000 of 7%, twenty-year bonds payable. The semi-annual interest dates are May 31 and November 30. The bonds are issued on May 31, 20X0, at par Requirements Journalize the following transactions: a. Issuance of half of the bonds on May 31, 20xO. 1. b. Payment of interest on November 30, 20X0. c. Accrual of interest on December 31, 20X0. d. Payment of interest on May 31, 20X1. 2. Report interest payable and bonds payable as they would appear on the Media Plus balance sheet at December 31, 20X0. Requirement 1. Journalize the transactions a through d. (Record debits first, then credits. Explanations are not required. Round all amounts to the nearest whole dollar.) a. Issuance of half of the bonds on May 31, 20Xo. Journal Entry Date Accounts Debit Credit May 31

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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Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid semi-annually on January 1st and July 1st. Is Franklin uses the straight line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1st is
On January 1, firm issued $500,000 of 15 year, 6 percent bonds payable for $552,325, yielding an effective rate of 5 percent. Interest is payable on June 30 and December 31 each year. The firm records amortization on each interest date.Bond interest expense for the first six months, using effective interest amortization, is: Select one: A. $14,059 B. $16,587 C. $15,000 D. $13,808
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