Chapter+10+Examplessol-1

Chapter+10+Examplessol-1 - Chapter 10 Examples Shannon...

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Chapter 10 Examples Shannon Company issued $500,000, 8%, 10-year bonds on December 31, 2009, for $480,000. Interest is payable annually on December 31. Shannon uses the straight-line method to amortize bond premium or discount. Instructions Prepare the journal entries to record the following events. (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2010. (c) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. Ans: N/A, SO: 5,6,8, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA: FSA 2009 (a) Dec. 31 Cash 480,000 Discounts of Bonds Payable. .................................... 20,000 Bonds Payable. ........................................................ 500,000 2010 (b) Dec. 31 Bond Interest Expense. ............................................ 42,000 Discount on Bonds Payable
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This note was uploaded on 01/18/2012 for the course ACCT 207 taught by Professor Hudchinson during the Fall '08 term at University of Delaware.

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Chapter+10+Examplessol-1 - Chapter 10 Examples Shannon...

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