Make the journal entry to record the issuance of the bonds

Reference no: EM13389507

On May 1, 2011, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2011, and pay interest semi-annually on May 1 and November 1. Financial statements are prepared annually on December 31.

Required:

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, 2011.

C. Show the balance sheet presentation on December 31, 2011.

D. Prepare the journal entry to record payment of interest on May 1, 2012, assuming no accrual of interest frrom January 1, 2012, to May 1, 2012.

E. Prepare the journal entry to record payment of interest on November 1, 2012.

F. Assume that on November 1, 2012, Newby calls the bonds at 102. Record the redemption of the bonds.

Reference no: EM13389507

Questions Cloud

Manual practice set refer to the feedback sheet attached to : refer to the feedback sheet attached to see where marks could be lost. you are not required to complete the

Describe the difference between standard deviation and : explain the difference between standard deviation and quartiles and percentiles. please provide examples.be sure to

Expalin how is the underlying purpose of job-based : how is the underlying purpose of job-based structures different from that of person-based structures? list the purpose

What allows the firm to have monopoly power what does this : you will write an original post responding to the following prompt worth 15 points 1-2 paragraphs in lengthin the last

Make the journal entry to record the issuance of the bonds : on may 1 2011 newby corp. issued 600000 9 5-year bonds at face value. the bonds were dated may 1 2011 and pay interest

Use at least one quality referencesnote wikipedia and other : write a two to three 2-3 page paper in which you1. assume that you are financial advisor to a business. describe the

Describe the difference between standard deviation and : explain the difference between standard deviation and quartiles and percentiles. please provide examples.be sure to

Provide an example of a product that has benefited from an : 1.research the concepts of push vs. pull communication strategies.2.develop an explanation in your own words of the

Explain the two fundamental equality requirements of : what are the two fundamental equality requirements of the double-entry accounting system? define debit and credit and

User Account

All Pages