Preparing a Journal Entry for Kusmaul Electric
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Kusmaul Electric sold $500,000, 10%, 10-year bonds on January 1, 2008. The bonds were dated January 1 and paid interest on January 1 and July 1. The bonds were sold at 104
Prepare the journal entry to record the issuance of the bonds on January 1, 2008. (List multiple debit/credit entries in descending order of amount.)
At December 31, 2008, the balance in the Premium on Bonds Payable account is $18,000. Show the balance sheet presentation of accrued interest and the bond liability at December 31, 2008.
On January 1, 2010, when the carrying value of the bonds was $516,000, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid. (List multiple debit/credit entries in descending order of amount.)
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This solution provides a journal entry for Kusmaul Electric with the provided information.
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Dear student ,
Solution to your posted problem is provided in a separate excel file attached, as well as provided below.
1) General Journal entries for issue and of Bonds and semi annual payment of interest in 2008.
2) Partial Balance sheet of Dec 31, 2008 showing carrying value of Bonds payable on that date.
3) General Journal entries for Interest payment and ...
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