This is question 1)
Halloway Company has issued three different bonds during 2011. Interest is payable
semiannually on each of these bonds.
1.
On January 1, 2011, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2011, were issued at face
value.
2.
On July 1, $800,000, 9%, 5-year bonds dated July 1, 2011, were issued at 102.
3.
On September 1, $200,000, 7%, 5-year bonds dated September 1, 2011, were issued at 98.
Prepare the journal entry to record each bond transaction at the date of issuance.
This is question 2)
The balance sheet for Lemay Company reports the following information on July 1,2011.
Long-term liabilities
Bonds payable $1,000,000
Less: Discount on bonds payable 60,000 $940,000
Lemay decides to redeem these bonds at 101 after paying semiannual interest. Prepare the journal
entry to record the redemption on July 1, 2011.
.
This is question 1)Halloway Company has issued three different b.docx
1. This is question 1)
Halloway Company has issued three different bonds during
2011. Interest is payable
semiannually on each of these bonds.
1.
On January 1, 2011, 1,000, 8%, 5-year, $1,000 bonds dated
January 1, 2011, were issued at face
value.
2.
On July 1, $800,000, 9%, 5-year bonds dated July 1, 2011, were
issued at 102.
3.
On September 1, $200,000, 7%, 5-year bonds dated September
1, 2011, were issued at 98.
Prepare the journal entry to record each bond transaction at the
date of issuance.
This is question 2)
The balance sheet for Lemay Company reports the following
information on July 1,2011.
Long-term liabilities
Bonds payable $1,000,000
Less: Discount on bonds payable 60,000 $940,000
Lemay decides to redeem these bonds at 101 after paying
semiannual interest. Prepare the journal
