On October 1, 2013, Koppa Corp. issued $948,000, 7%, 10-year bonds at face value
ID: 2712241 • Letter: O
Question
On October 1, 2013, Koppa Corp. issued $948,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2013, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
Prepare the adjusting entry to record the accrual of interest on December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
and
Assume that the following are independent situations recently reported in the Wall Street Journal.
Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $700,000 of bonds in total. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
there is parts of the question that can only be shown after i answer this part.
1. General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 110.80. 2. Boeing 7% bonds, maturing September 24, 2029, were issued at 98.64.Explanation / Answer
On October 1, 2013, Koppa Corp. issued $948,000, 7%, 10-year bonds at face value. The bonds were dated October 1, 2013, and pay interest annually on October 1. Financial statements are prepared annually on December 31.
Prepare the adjusting entry to record the accrual of interest on December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Assume that the following are independent situations recently reported in the Wall Street Journal.
1. General Electric (GE) 7% bonds, maturing January 28, 2015, were issued at 110.80.
2. Boeing 7% bonds, maturing September 24, 2029, were issued at 98.64.
(c)Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $700,000 of bonds in total. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
General Electric (GE)
Boeing
Date Account Title & Explaination Debit Credit December 31, 2013 Interest Expenses ( 948000*7%*3/12) 16590 Interest Payable 16590Related Questions
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