Chapter 16, Problem 2E

a)

To determine

Introduction: The accounting cycle begins by passing the journal entry in the books of accounts. Every financial transaction affects at least two accounts as most organizations employ a double-entry accounting system; while one account is debited, another account is credited.

To prepare: The journal entry on interest expense.

b)

To determine

Introduction: The accounting cycle begins by passing the journal entry in the books of accounts. Every financial transaction affects at least two accounts as most organizations employ a double-entry accounting system; while one account is debited, another account is credited.

To prepare: The journal entry of Conversion of Bonds.