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maw [93]
3 years ago
14

Whispering Corporation issued $480,000 of 7% bonds on November 1, 2017, for $515,707. The bonds were dated November 1, 2017, and

mature in 10 years, with interest payable each May 1 and November 1. Whispering uses the effective-interest method with an effective rate of 6%.Prepare Whispering's December 31, 2017, adjusting entry.
Business
1 answer:
Snezhnost [94]3 years ago
4 0

Answer:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

Explanation:

The 7%bond is issued by the Whispering Corporation on November 1, 2017 and the Whispering Corporation is using effective interest method with an interest rate of 6%, therefore the adjusting entry shall be recorded as at December 31,2017 in respect of interest accrued for two months i.e. November and December 2017 by following amount:

515,707*6%*2/12=5,157

The following adjusting entry shall be recorded in accounts of Whispering Corporation in respect of interest accrued as at December 31, 2017:

                                                                    Debit                           Credit

Interest Expense                                        5,157

Long term Bonds                                                                            5,157

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<h3>What is Managerial Accounting?</h3>

Generally, Information for external decision-makers is the primary emphasis of managerial accounting. For investment decisions, stockholders rely heavily on management accounting data.

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Convenience goods like Coke are available almost everywhere in the United States. Thus, Coke uses ______ distribution:
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Define money and identify the different forms that it takes in the nation's money supply
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Answer:

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3 years ago
Coastal Shores Inc. (CSI) was destroyed by Hurricane Fred on August 5, 2021. At January 1, CSI reported an inventory of $170,000
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Answer:

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Calculation to determine what The estimated inventory loss due to Hurricane Fred would be

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