Prepare the adjusting entry to record accrual of interest

Assignment Help Accounting Basics

Reference no: EM131765219

Question: On June 1, 2016, Kerry Corp. issued $2,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2016, and pay interest annually on June 1. Financial statements are prepared annually on December 31.

Instructions: (a) Prepare the journal entry to record the issuance of the bonds.

(b) Prepare the adjusting entry to record the accrual of interest on December 31, 2016.

(d) Prepare the journal entry to record payment of interest on June 1, 2017.

(e) Prepare adjusting entry record the accrual of interest on December 31 2017.

(f) Assume that on January 1, 2018, Kerry calls the bonds at 102. Record the payment of interest and the redemption of the bonds.

Reference no: EM131765219

Questions Cloud

Discuss purchase of office supplies by initially debiting : Record the adjusting entry assuming that Bolt records the purchase of office supplies by initially debiting an asset account

Determine the corporation net income : On July 1, the Leeann Merchandising Corporation had 9,000 keyboards in inventory. Each keyboard had cost the Corporation $12.

Estimate the implied volatility of xyz corp stock : Based on the information given in the previous question (question #1) and the call option price you just calculated, estimate the implied volatility of XYZ Corp

Beer corporation has beer-processing facility : The Best Beer Corporation has a beer-processing facility located in Columbus, Ohio. What is the rated weekly capacity for the facility?

Prepare the adjusting entry to record accrual of interest : On June 1, 2016, Kerry Corp. issued $2,000,000, 9%, 5-year bonds at face value. The bonds were dated June 1, 2016, and pay interest annually on June 1.

Still eligible for partial exclusion but the primary reason : If your circumstances don't match any of the standard requirements described above you still eligible for partial exclusion but the primary reason for sale

Pv of a perpetuity : If your required rate of return was 10% a year, how much would you pay today for $100 a month forever?

Prepare the service revenue budget : Prepare the service revenue (sales) budget for 2011 by listing the departments and show. ing for each quarter

Needs analysis and design and evaluation of training : What is the relationship between needs analysis and the design and evaluation of training?

User Account

All Pages