Question on june 1 2016 kerry corp issued 2000000 9 5-year, Ask an Expert

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Question: On June 1, 2016, Kerry Corp. issued $2,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2016, and pay interest annually on June 1. Financial statements are prepared annually on December 31.

Instructions: (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, 2016.

(d) Prepare the journal entry to record payment of interest on June 1, 2017.

(e) Prepare adjusting entry record the accrual of interest on December 31 2017.

(f) Assume that on January 1, 2018, Kerry calls the bonds at 102. Record the payment of interest and the redemption of the bonds.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92573902

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