P11-6A_&_P11-7A Group

P11-6A_&_P11-7A Group - Name: Instructor: P116A

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Name: Instructor: Jaclyn Miller Course: ACC/363 Date: 11/19/08 P11-6A  On July 1, 2006, Kingston Satellites issued $3,600,000 face value, 9%, 10-year bonds at $3,375,680. This price resulted in an effective-interest rate of 10% on the bonds. Kingston u the effective-interest method to amortize bond premium or discount. The bonds pay semian interest July 1 and January 1. Instructions (Round all computations to the nearest dollar.) (a) Prepare the journal entry to record the issuance of the bonds on July 1, 2006. 7/1/2006            Cash  3,375,680             Discount on Bonds Payable  224,320  Bonds Payable  3,600,000     (To record sale of bonds at a discount) (b) Prepare the journal entry to record the accrual of interest and the amortization of the dis on December 31, 2006. (c) Prepare the journal entry to record the payment of interest and the amortization of the di on July 1, 2007, assuming that interest was not accrued on June 30. (d) Prepare the journal entry to record the accrual of interest and the amortization of the dis on December 31, 2007. (e) Prepare an amortization table through December 31, 2007 (3 interest periods) for this bo issue.
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P11-7A On July 1, 2006, S. Strigel Chemical Company issued $5,000,000 face value, 10%, 10-
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This note was uploaded on 02/19/2011 for the course ACC 363 taught by Professor Rossi during the Fall '08 term at University of Phoenix.

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P11-6A_&_P11-7A Group - Name: Instructor: P116A

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