On may 1 2012 chance corp issued 427800 9 5-year bonds at, Ask an Expert

Accounting

On May 1, 2012, Chance Corp. issued $427,800, 9%, 5-year bonds at face value. The bonds were dated May 1, 2012, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.

(a) Prepare the journal entry to record the issuance of the bonds.

(b) Prepare the adjusting entry to record the accrual of interest on December 31, 2012.

(d) Prepare the journal entry to record payment of interest on May 1, 2013, assuming no accrual of interest from January 1, 2013, to May 1, 2013.

(e) Prepare the journal entry to record payment of interest on November 1, 2013.

(f) Assume that on November 1, 2013, Chance calls the bonds at 104. Record the redemption of the bonds.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9968419

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