Bond journal entries
Not what you're looking for?
Crow Co. issued 493,000 of 10%, 20 yr. bonds on Jan, 1, 2010, at face value.
Interest is payable annually on Jan. 1.
I need to prepare journal entries to record the last of the following events:
(I finished most of this; but stuck on these questions). I need to understand this for my timed test tomorrow.
a) Jan 1 ~ Issuance of the bonds
b) Dec 31 ~ accrual interest on Dec. 31,2010
c) Payment of interest on Jan. 1, 2011
d) Redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Purchase this Solution
Solution Summary
The solution explains the journal entries relating to bond issue, accrual and payment of interest and redemption of bonds at maturity
Solution Preview
a) Jan 1 ~ Issuance of the bonds
The amount received is 493,000 and that is the face value also so there is no discount or premium on the bonds. The entry is
Cash Dr 493,000
Bonds Payable Cr 493,000
b) Dec 31 ~ accrual ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
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.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce