Accounting


Accounting Forum

AccountingCoach.com is the world's largest free online accounting course.


Not signed in (Sign In)

Categories

Vanilla 1.1.7 is a product of Lussumo. More Information: Documentation, Community Support.

Welcome Guest!
Want to take part in these discussions? If you have an account, sign in now.
If you don't have an account, apply for one now.

General Accounting Discussions: Long Term Liabilty

Bottom of Page

1 to 1 of 1

  1.  
    • CommentAuthorgummaa
    • CommentTimeMar 4th 2008
     
    would anyone be able to with this question

    Khan Corporation has $20,000,000 of 10.5 percent, 20 year bonds dated June 1, with interest payment dates of May 31 and November 30. The company’s fiscal year ends December 31. It uses the effective interest method to amortize bond premiums or discounts (Round amounts to the nearest dollars).

    1. Assume the bonds are issued at 103 on June 1 to yield an effective interest rate of 10.1 percent. Prepare journal entries for June 1, November 30, and December 31.

    2. Assume the bonds are issued at 97 on June 1 to yield an effective interest rate of 10.9 percent. Prepare journal entries for June 1 and November 30 and December 31.

    3. Assume the bonds are issued at face value plus accrued interest on August 1. Prepare journal entries for August 1, November 30 and December 31.
    Thankful People: vicky

1 to 1 of 1

  1.  



 

Why AccountingCoach.com?

the accounting coach

AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.


By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.


We understand how difficult accounting can be. That's why we have ensured that each accounting topic includes a clear explanation, reinforcing drills, Q&A, puzzles, dictionary of terms, etc.


Read 1,440 Visitor Testimonials



What's on AccountingCoach.com?