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P16-1A - 33,333 Bond Interest Payable 6666.7(To record one...

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Homework # 3 P16-1A a) Cash 1,000,000 Bonds Payable 1,000,000 (To record sale of bonds on the face value) b) Dec.31 Bond Interest Expense 40,000 (adj.) Bond Interest Payable 40,000 (To accrue bond interest) Hopkins Corp. Balance Sheet (partial) December 31, 2005 c) Current liabilities Bond interest payable ( for 6 month 40,000 from Jun.1 to Dec.1) Total current liabilities 40,000 Long-term liabilities Bonds payable, 8%, due Jun1.2010 1,000,000 Total long-term liabilities 1,000,000 Total liabilities 1,040,000 d) Jun.1 Cash 40,000 2006 Bond Interest Expense
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Unformatted text preview: 33,333 Bond Interest Payable 6666.7 (To record one payment) e) Dec.1 Bond Interest Payable 40,000 2006 Cash 40,000 (To record payment on bond interest) f) Dec.1 Bonds Payable 1,000,000 2006 Loss on Bond Redemption 10,000 Cash 1,010,000 (To record redemtion of bonds at 101) a&f) are correct. b) think about what happened on 12/1--then revise 12/31. c) will change based on (b). d&e) Bondholders expect $40,000 every interest date. Have a pleasant day, Betty : )...
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