Accounting E15-1, BE15-2, BE15-11 - (b) July. 1 Bond...

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Jordan Evans E15-1 1 TRUE 2 TRUE 3 FALSE 4 TRUE 5 FALSE Unsecured bonds are also known as debenture bonds. 6 FALSE Bonds that mature in installments are called serial bonds. 7 TRUE 8 TRUE 9 TRUE 10 TRUE advantage of issuing bonds over issuing common stock is that you save on  taxes 
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BE15-2 (a) Jan. 1 Cash  3,000,000  Bonds Payable (b) July. 1 Bond Interest Expense  120,000  Cash (c) Dec. 31 Bond Interest Expense  120,000  Bond Interest Payable
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 3,000,000   120,000   120,000 
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BE15-11 (a) Jan.  1 Cash  4,800,000  Discount on Bonds Payable  200,000  Bonds Payable
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Unformatted text preview: (b) July. 1 Bond Interest Expense 235,000 Discount on Bonds Payable Cash (b) could/should be done this way July. 1 Bond Interest Expense 225,000 Cash July. 1 Bond Interest Expense 10,000 Discount on Bonds Payable assume year end of OCT. 31 Bond Interest Expense 150,000 Bond Interest Payable Bond Interest Expense 6,667 Discount on Bonds Payable 5,000,000 10,000 225,000 225,000 10,000 225,000 * (4/6) 150,000 10,000 * (4/6) 6,667...
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This note was uploaded on 03/28/2011 for the course ACCOUNTING 101 taught by Professor Bob during the Spring '10 term at Rowan-Cabarrus Community College.

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Accounting E15-1, BE15-2, BE15-11 - (b) July. 1 Bond...

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