Question;ACCT 3220;Fall 2013;Group Exercise;#4;Sapienti Co.;sells $400,000 of 12% bonds on June 1, 2014, the contract date. The bonds pay interest on December 1 and June;1. The due date of the bonds is June 1;2018. The bonds yield 10%. After the second interest payment, Sapienti;buys back the bonds when the market interest rate is 8%.;Required;1. Record;the journal entry for the issuance of the bond.;2. Record;the journal entry for the first interest payment.;3. Record;the journal entry on December 31, 2014.;4. Record;the journal entry for the second interest payment.;5.;Record the journal entry for the buy;back of the bonds.
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