Chapter 10, Problem 11AP

(a-1)

To determine

Prepare the journal entry to record the issuance of bonds of Company O on January 1,

2017.

(a-2)

To determine

Prepare the journal entry to record the accrued interest expense and premium on amortize bond for Company O on December 31, 2017.

(a-3)

To determine

Prepare the journal entry to record the payment of interest of Company O on January 1, 2018.

(a-4)

To determine

Prepare the journal entry to record the accrued interest expense and discount on amortize bond for Corporation L on December 31, 2018.

(b)

To determine

Prepare the proper long-term liabilities section balance sheet presentation for the liability of bonds payable on 31^st December 2018 of Company O.

(c-1)

To determine

Prepare the interest expenses amount shows in the year 2018 of Company O.

(c-2)

To determine

Ascertain if the bond interest expense reported in the year 2018 is greater than the amount reported, lesser than the amount reported or same amount reported, if the Company used the straight-line method of amortization.