30.3k views
4 votes
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

User Al Joslin
by
9.1k points

1 Answer

4 votes

Solution:

Jan 01, 2018

Cash $452,737

bonds payable $452,737

June 30,2018

Interest expense 13,655

bonds payable 1055

cash 12600

Dec 31,2018

Interest expense 13,692

bonds 12600

User Funkifunki
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.