Quiz 6 Answers

Quiz 6 Answers - Name _ USC ID# _ Class (Circle) _ 2PM or 4...

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Name ___________________________ USC ID# _________________________ Class (Circle) ___ 2PM or 4 PM_ _______ QUIZ 6 1. On January 1, 2011, BailBond, Inc. issued $500,000, 10-year, 10% bonds. The bonds sold for $480,000. Interest is payable semi-annually on June 30 and December 31 each year. Show general journal entries in good form: a. To record the sale of the bonds on January 1, 2011. Cash 480,000 Discount on bonds 20,000 Bonds payable 500,000 b. Using straight line amortization, record the payment of interest on June 30, 2011. Interest expense 26,000 Discount on bonds 1,000 Cash 25,000 (half a year’s interest paid = 10% * 500,000 / 2 Page 1 of 2
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2. DEW Corp issues $100,000, 10-year, 6% bonds. Interest is payable semiannually on June 30 and December 31 each year.
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Quiz 6 Answers - Name _ USC ID# _ Class (Circle) _ 2PM or 4...

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