Details of this Paper

worthington company issued 1,000,000 face value, six-year, 10%

Description

solution


Question

worthington company issued 1,000,000 face value, six-year, 10% bond on July 1, 2010, when the market rate of interest was 12%. interest payments are due every July 1 and January 1. Worthington uses a calender year-end.;1. prepare the journel entry to record the issurance of the bonds on july 1, 2010.;2. prepare the adjusting journal entry on dec. 31 2010, to accure interest expense.;3. prepare the journal entry to record the interest payment on January 1,2011.;4. Calculate the amount of cash that will be paid for the retirement of the bonds on the maturity date

 

Paper#34409 | Written in 18-Jul-2015

Price : $32
SiteLock