EXERCISE 14-3 - 210,000 Bonds Payable....

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EXERCISE 14-3 (15–20 minutes) 1. Divac Company: (a) 1/1/10 Cash. ................................................... ............................................................. 300,000 Bonds Payable. ........................ 300,000 (b) 7/1/10 Interest Expense ($300,000 X 9% X 3/12). .................. 6,750 Cash. .......................................... 6,750 (c) 12/31/10 Interest Expense. ............................... 6,750 Interest Payable. ....................... 6,750 2. Verbitsky Company: (a) 6/1/10 Cash. ................................................... .............................................................
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Unformatted text preview: 210,000 Bonds Payable. ........................ 200,000 Interest Expense ($200,000 X 12% X 5/12). ....... 10,000 (b) 7/1/10 Interest Expense. ............................... 12,000 Cash ($200,000 X 12% X 6/12). ....... 12,000 (c) 12/31/10 Interest Expense. ............................... 12,000 Interest Payable. ....................... 12,000 Note to instructor : Some students may credit Interest Payable on 6/1/10. If they do so, the entry on 7/1/10 will have a debit to Interest Payable for $10,000 and a debit to Interest Expense for $2,000....
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This note was uploaded on 04/22/2010 for the course ACCT ACC552 taught by Professor Hint during the Spring '09 term at Keller Graduate School of Management.

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EXERCISE 14-3 - 210,000 Bonds Payable....

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