: On June 30, 2017, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an effective-interest rate of 8%. Interest is
: On June 30, 2017, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to
yield an effective-interest rate of 8%. Interest is paid semiannually on June 30 and
December 31. The company uses the effective-interest method of amortization.
Required:
For ABC Co. answer the following independent requirements:
a. Prepare the necessary journal entry on June 30, 2017.
b. Prepare the necessary journal entry on December 31, 2017.
c. Assume that the bond was issued on August 31, 2017, prepare the journal entry on
December 31, 2017.
d. Assume that the accounting date for ABC Corporation is October 31, prepare the journal
entry on October 31, 2017.
ORARE
How it Works
1
It only takes a couple of minutes to fill in your details, select the type of paper you need (essay, term paper, etc.), give us all necessary information regarding your assignment.
2
Once we receive your request, one of our customer support representatives will contact you within 24 hours with more specific information about how much it'll cost for this particular project.
3
After receiving payment confirmation via PayPal or credit card – we begin working on your detailed outline, which is based on the requirements given by yourself upon ordering.
4
Once approved, your order is complete and will be emailed directly to the email address provided before payment was made!