Bond journal entries
Not what you're looking for?
Prepare journal entries to record the following transactions related to long term bonds of quirk Co. On April 1,2009 Quirk issued $500,000, 9% bonds for 537,868 including accrued interest. Interest payable annually on January 1 and the bonds mature on January 1, 2019.
On July 1, 2011 Quirk retired $150.000 of the bonds at 102 plus accrued interest. Quirk uses straight line amortization
Purchase this Solution
Solution Summary
The solution explains journal entries relating to bond transactions
Solution Preview
(a) The accrued interest is 500,000 X 9% X 3/12 = 11,250. The issue price of bonds is 537,868-11,250 = 526,618. The premium on bonds is 26,618. The entry for the bond issuance is
Cash Dr 537,868
Interest Expense Cr 11,250
Bonds Payable Cr 500,000
Premium on Bonds Payable Cr 26,618
(b) Bonds are issued for 120-3=117 ...
Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)