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Exercise 8-14 Issuing Bonds Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunication companies. Cyber Tech Inc. issues...

Exercise 8-14 practice problem
Exercise 8-14 Issuing Bonds Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunication companies. Cyber Tech Inc. issues $50,000,000 of 20-year, 6% bonds on March 1 at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calender year. Illustrate the effects on the accounts and financial statements of recording the following selected transactions for the current year: March 1. Issued the bonds for cash at their face amount. September 1. Paid interest on the bonds. December 31. Recorded accrued interest for four months.
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Hi, Please find the... View the full answer

8442157.xlsx

Solution
01-March. Long Term Liability will increase by $50,000,000 and cash will increase by $ 50,000,000
Cash $50,000,000
Bonds Payable 01-Sep. Interest expense will be booked for...

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