Problemon january 1 klosterman company issued 426000 11, Ask an Expert

Accounting

Problem:

On January 1, Klosterman Company issued $426,000, 11%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

Required:

Question 1: Prepare the journal entry to record the issuance of the bonds.

Question 2: Prepare the journal entry to record the payment of interest on July 1, assuming that interest was not accrued on June 30.

Question 3: Prepare the journal entry to record the accrual of interest on December 31

Note: Be sure to show how you arrived at your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165273

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