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List Of Accounts Problem 10-8A Accounts Payable Accounts Receivable Accumulated

ID: 2538113 • Letter: L

Question

List Of Accounts Problem 10-8A Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Accrued Pension Liability Bonds Payable Buildings Cash Common Stock Cost of Goods Sold Current Portion of Long-Term Debt Depreciation Expense Discount on Bonds Payable Dividends Equipment Federal Income Taxes Payable Federal Unemployment Taxes Payable FICA Taxes Payable Gain on Bond Redemption Income lax Expense Income Taxes Payable Insurance Expense Interest Expense Interest Payable Inventory Land Loss on Bond Redemption Mortgage Payable No Entry Notes Payable Other Operating Expenses Payroll Tax Expense Premium on Bonds Payable Prepaid Insurance Property Taxes Payable Retained Earnings Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Sales Taxes Payable Service Revenue Share Premium-Conversion Equity State Income Taxes Payable State Unemployment Taxes Payable Subscription Revenue Ticket Revenue Unearned Rent Revenue Unearned Sales Revenue Unearned Service Revenue Unearned Subscription Revenue Unearned Ticket Revenue Union Dues Payable Warranty Liability

Explanation / Answer

Answer

Bond payable

$912,000

Interest rate

8%

Annual Interest rate

$72,960

Monthly Interest

$6,080

Date

Accounts Titles

Debit (in $)

Credit (in $)

01-Oct-16

Cash

912000

Bonds payable

912000

(Issuance of bonds)

31-Dec-16

Interest expenses

18240

Interest payable

18240

(adjusting entry to record accrual of intterest)

01-Oct-17

Interest expense

54720

Interest payable

18240

Cash

72960

(payment of interest)

31-Dec-17

Interest expenses

18240

Interest payable

18240

(adjusting entry to record accrual of interest)

01-Jan-18

Interest payable

18240

Cash

18240

(payment of interest)

01-Jan-18

Bonds payable

912000

Loss on Bonds redemption

36480

Cash

948480

(bonds retired)

Long Term Debt

Bonds Payable

$912000

Current part of Long term debts

Interest payable

$18240

Bond payable

$912,000

Interest rate

8%

Annual Interest rate

$72,960

Monthly Interest

$6,080

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