B-13.06 Problem

B-13.06 Problem - (c) Prepare the journal entry that Ace...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
B-13.06 Ace Brick company issued $100,000 of 5-year bonds. The bonds were issued at par on January 1, 20X1, and bear interest at a rate of 8% per annum, payable semiannually. (a) Prepare the journal entry to record the bond issue on January, 20X1. (b) Prepare the journal entry that Ace would record on each interest date.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (c) Prepare the journal entry that Ace would record at maturity of the bonds. (d) How much cash flowed "in" and "out" on this bond issued, and how does the difference compare to total interest expense that was recognized?...
View Full Document

This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

Ask a homework question - tutors are online