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Unformatted text preview: been less than the face value of the bonds. The bonds would have been issued at a discount. 3. July 1 Interest Expense 15,000 Cash 15,000 To record payment of interest. Assets = Liabilities + Owners’ Equity –15,000 –15,000 4. Dec. 31 Interest Expense 15,000 Interest Payable 15,000 To record accrual of interest. Assets = Liabilities + Owners’ Equity +15,000 –15,000...
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This note was uploaded on 04/13/2008 for the course ACCT 201 taught by Professor Scconline during the Summer '07 term at UNL.
- Summer '07