E14-3B (Entries for Bond Transactions) Presented below are two independent situations.
1. On January 1, 2014, Delgado Company issued $500,000 of 8%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.
2. On June 1, 2014, Kumiko Company issued $200,000 of 10%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1.
#button {
background-color: #F05A1A;
border: 5px;
border-radius: 5px;
color: white;
padding: 5px 5px;
text-align: center;
text-decoration: none;
display: inline-block;
font-size: 13px;
margin: 4px 2px;
cursor: pointer;
}
Save your time – order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now
Instructions
For each of these two independent situations, prepare journal entries to record the following.
(a) The issuance of the bonds.
(b) The payment of interest on July 1.
(c) The accrual of interest on December 31.
