Chapter 10 exercise - Chapter 10 P10-8B. Lester Company...

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Chapter 10 P10-8B. Lester Company sold $2,500,000, 10%, 10-year bonds on January 1, 2010. The bonds were dated January 1, 2010, and pay interest on January 1. Lester Company uses the straight-line method to amortize bond premium or discount. Instructions (a) Prepare all the necessary journal entries to record the issuance of the bon 2010, assuming that the bonds sold at 102. (b) Prepare journal entries as in part (a) assuming that the bonds sold at 96. (c) Show the balance sheet presentation for the bond issue at December 31, and then (2) the 96 selling price. E10-8 On September 1, 2010, Elmdale Corporation issued $600,000, 8%, 10-year bonds at face value. Interest is payable annually on September 1. Elmdale's year-end is December 31. Prepare journal entries to record the following events. (a) The issuance of the bonds. (b) The accrual of interest on December 31, 2010. (c) The payment of interest on September 1, 2011. E10-9 On January 1 Kreitzer Company issued $300,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare journal entries to record the following events.
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This document was uploaded on 11/02/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Chapter 10 exercise - Chapter 10 P10-8B. Lester Company...

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