Chapter 15 week 1 E15-18

Chapter 15 week 1 E15-18 - 50,000 1/1 Interest Expense...

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E15-18 Columbus, Inc., issued $50,000 of 10-year, 6% bonds payable on January 1, 2006. Columbus pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line method. The company can issue its bonds payable under various conditions: a. Issuance at par (maturity) value b. Issuance at a price of 95 c. Issuance at a price of 105 Date Accounts Debit Credit 1/1 Cash 50,000 Bonds Payable
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Unformatted text preview: 50,000 1/1 Interest Expense 1,500 Interest Payable 1,500 Date Accounts Debit Credit 1/1 Cash 47,500 Discount of Bond 2,500 Bonds Payable 50,000 1/1 Interest Expense 1,625 Discount of Bonds Payable 125 Interest Payable 1,500 Date Accounts Debit Credit 1/1 Cash 52,500 Premium on Bonds 2,500 Bonds Payable 50,000 1/1 Interest Expense 1,375 Premium on Bonds Payable 125 Interest Payable 1,500...
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This note was uploaded on 06/13/2011 for the course ACC 206 taught by Professor Any during the Spring '11 term at Ashford University.

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Chapter 15 week 1 E15-18 - 50,000 1/1 Interest Expense...

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