Chapter 10 HW - Brief 10.5 At issue date Cash $485,000...

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

View Full Document Right Arrow Icon
Brief 10.5 At issue date: Cash……………………………………………………………………. . $485,000 Discount on Bonds Payable…………………………………………. . $15,000 Bonds Payable……………………………………………. $500,000 Issued 10-year bonds with $500,000 face vaule to an underwriter at a price of $97. Annual payment of interest: Interest Expense………………………………………………………. $25,000 Interest Expense………………………………………………………. $1,500 Discount on Bond Payable. .……………………………. . $1,500 Cash………………………………………………………… $25,000 Annual payment of bond interest and ammortization of discount on bonds payable. Brief 10.6 At issue date: Cash……………………………………………………………………. . $714,000 Bonds Payable……………………………………………. $700,000 Bonds Premium. .…………………………………………. $14,000 Issued 10-year bonds with $500,000 face vaule to an underwriter at a price of $102. Annual payment of interest: Interest Expense………………………………………………………. $35,000 Bond premium payable………………………………………………… $1,400 Cash………………………………………………………… $36,400 Annual payment of bond interest and ammortization of bonds premium payable. Exercise 10.8 a. April 30th, 2007 Cash……………………………………………………………………. . $50,375 Bonds Payable……………………………………………. $50,000 Bond Interest Payable……………………………………. $375 Issued $50,000 of 9%, 30-year bonds at face value plus accrued interest for one month. b. September 30th, 2007 Bond Interest Payable………………………………………………… $375 Bond Interest Expense………………………………………………… $1,875 Cash………………………………………………………… $2,250 Paid semiannual intereset on $50,000 face value of 9% bonds. c.
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.

This note was uploaded on 12/13/2009 for the course ACCOUNTING ACCTG 50 taught by Professor B during the Fall '09 term at University of Phoenix.

Page1 / 5

Chapter 10 HW - Brief 10.5 At issue date Cash $485,000...

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