Monday
November 24, 2014

Homework Help: accounting

Posted by niecey on Wednesday, September 19, 2012 at 1:03pm.

Worthington Company issued $1,000,000 face value , six-year, 10% bond on July 1, 2010, when the market rate of interest was 12%. Interest payments are due every July 1, and January 1. Worthington uses a calendar year-end. 1. Prepare the journal entry to record the issuance of the bonds on July 1, 2010. 2. Prepare the adjusting journal entry on December 31, 2010, to accrue interest expense. 3. Prepare the journal entry to record the interest payment on January 1, 2011. 4. Calculate the amount of cash that will be paid for the retirement of the bonds on the maturity date.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

corporate accounting - Worthington Company issued 1,000,000 face value, 10% ...
Accounting - 1. The price of a bond is equal to the sum of the interest payments...
Business Maths - Please how do i calculate this problem: The Raymore Company ...
Accounting - 1. On July 1, 2010, Harris Co. issued 6,000 bonds at $1,000 each. ...
Intermediate Accounting - The 10% bonds payable of Klein Company had a net ...
accounting - On July 1, 2010, Brower Industries Inc. Issued $32,000,000 of 10-...
accounting - On July 1, 2010, Brower Industries Inc. issued $8,900,000 of 9-year...
Accounting - 1. Bonds Payable has a balance of $900,000 and Premium on Bonds ...
accounting - Heww Inc., issued a $50,000, 10 year bond with a stated interest ...
math - On the June 12 interest payment date, the outstanding balance on Delta ...

Search
Members