Exercise 15-4 Warning Don\'t show me this message again for the assignment Ok Ca
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Exercise 15-4
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Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2017
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Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2017
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Date
Account Titles and Explanation
Debit
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Jan. 1, 2018
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Prepare the journal entry to record the redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.
Exercise 15-4
Laudie Company issued $536,500 of 8%, 10-year bonds on January 1, 2017, at face value. Interest is payable annually on January 1.Warning
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Explanation / Answer
Interest expense = 536500*8%= 42920
*Hope the above explanation helps, please comment if further explanation is required. Your rating is appreciated*
Date Account Debit Credit 1-Jan-17 Cash 536500 8% bonds payable 536500 [Issued bonds at par] 31-Dec-17 Interest expense 42920 Interest payable 42920 [Accrued interest expense for the year] 1-Jan-18 Interest payable 42920 Cash 42920 [Paid annual interest on bonds]Related Questions
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