Solved by Expert Tutors
Solved by Expert Tutors
Question

# Financial Accounting and Reporting Bonds issued at Face value on an Interest Date

ABC Company's accounting year ends on December 31. On December 31, 200a, ABC issued 10-year, 12%
bonds with a face value of P100,000, for P100,000. The bonds are dated December 31, call for semiannual
interest payments on June 30 and December 31, and mature in 10 years on December 31. ABC made the
required interest and principal payments when due.
1. Identify the entry to record the issuance of bonds on December 31.
2. Determine the entry to record the payment of interest for June 30.
3. Ten years later, the maturity date, Identify the entry for the last payment of interest and the amount of
the bond.
IN CONTEXT: Assuming that ABC bonds were dated October 31, issued on the same date, and paid interest
on October 31 and April 30. ABC must make an adjusting entry on December 31 to accrue interest earned for
November and December but not paid until April 30 of the next year.
4. Determine the entry to record the accrued interests for November and December payable in April.
5. The April 30 entry in the next year would include the accrued amount from December of last year and
interest expense for January to April of this year, Identify the entry to record payment of six (6) months
bond Interest.
6. Since the 6-month period ending October 31 occurs within the same fiscal year, identify the entry to
record the semiannual interest payments.

molestie consequat, ultrices ac magna.

trices ac magna. Fusce dui l

gue vel laoreet ac, dictum

inia pulvinar tortor nec facilisis. Pellentes

s ante, dapibus a

Donec aliquet. Lorem ipsum dolor sit amet, cons

s ante, dapibus a

ng elit. Nam lacinia pulvinar t

itur laoreet. Nam risus ant

pulvinar tortor ne

cing elit. Nam lacinia pulvinar

ipiscing elit. Nam lacinia pulvinar tortor nec fa

usce dui lectus, congue vel l

entesque dapibus efficitur laoreet. Nam risus ante, d

, dictum vitae odio. Donec aliquet. Lorem ips

facilisis. Pellentesque dap

at, ultrices ac ma

ctum vitae odio. Donec alique

acinia pulvinar tortor nec facilisis. Pellentesq

s ante, dapibus a

ctum vitae odio. Donec alique

acinia pulvi

acinia pulvi

m ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna

rem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magnFusce dui lectus, congue vel laoreet ac, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit

itur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donegue vel laora. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a moles

usce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus,

, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec a

ia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents