14 Ch. 14 - T-Accounts

14 Ch. 14 - T-Accounts - Analyzing Long-Term Liabilities...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Analyzing Long-Term Liabilities with T-Accounts Bonds issued at par on interest dates. Par Value $800,000 Maturity 10 years Stated Interest 10% Eff. Yield/Price 10.000% or 100 Cash Bonds Payable Dr. + Cr. - Dr. - Cr. + 800,000 800,000 Semiannual interest payment. Bond Interest Expense Cash Dr. + Cr. - Dr. + Cr. - 40,000 40,000 Accrued interest at year end. Bond Interest Expense Bond Interest Payable Dr. + Cr. - Dr. - Cr. + 40,000 40,000 Semiannual interest payment at beginning of new year. Bond Interest Payable Cash Dr. - Cr. + Dr. + Cr. - 40,000 40,000 Bonds issued at par plus accrued interest. Par Value $800,000 Price 100 Stated Interest 6% Accrual 2 months Cash Bonds Payable Dr. + Cr. - Dr. - Cr. + 808,000 800,000 Bond Interest Payable (Expense) Dr. + Cr. - 8,000 Semiannual interest payment. Bond Interest Expense Bond Interest Payable Cash Dr. + Cr. - Dr. + Cr. - Dr. + Cr. - 16,000 8,000 24,000 OR Bond Interest Expense Cash Dr. + Cr. - Dr. + Cr. - 24,000 24,000 Accrued interest at year end. Bond Interest Expense
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

14 Ch. 14 - T-Accounts - Analyzing Long-Term Liabilities...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online