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 LiabilityExplanation / 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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