ACC 210P Chapter 9

ACC 210P Chapter 9 - ACC 210P Chapter 9 1. On January 1,...

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ACC 210P Chapter 9 1. On January 1, 2007, Kentwood Company issued bonds with a face value of $500,000. The bonds carry a stated interest of 7% payable each January 1. a. Prepare the journal entry for the issuance assuming the bonds are issued at 97. b. Prepare the journal entry for the issuance assuming the bonds are issued at 102.
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2. Kite Company issued $300,000, 10%, 10-year bonds on January 1, 2007, at 105. Interest is payable annually. Kite uses the effective-interest method of amortization and has a calendar year end and the bonds were issued for an effective interest rate of 8%. Instructions Prepare all journal entries made in 2007 related to the bond issue.
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3. The adjusted trial balance for Dolton Corporation at the end of the current year contained the following accounts: Bonds payable, 10%. .............................................................. $400,000 Bond interest payable . ............................................................ 20,000 Discount on bonds payable . ................................................... 30,000
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ACC 210P Chapter 9 - ACC 210P Chapter 9 1. On January 1,...

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