On October 1, 2016, Concord Corp. issued $924,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pa

Question

3 years ago

15

On October 1, 2016, Concord Corp. issued $924,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pa

y interest annually on October 1. Financial statements are prepared annually on December 31.
Prepare a tabular summary to record the issuance of the bonds and the adjustments to record the accrual of interest on December 31, 2016.

Business

1 answer:

Advocard [28] · Answer 1 · 2022-08-22T16:57:39+03:00

Answer:

Tabular summary is attached with this answer in MS EXCEL file.

Explanation:

The journal Entries for the Transactions are as follow

Dr. Cr.

October 1, 2016 Cash $924,000

Bond Payable $924,000

December 31 , 2016 Interest Expense $16,170

Interest Payable $16,170

Interest Expense = $924,000 x 7% x 3/12 = $16,170

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