Scenario 2 On January 1, 2020, Harvey Inc. made available $100,000 of 20 years, 10% bonds at par value. The bonds pay quaterly interest on April 1, July 1, October 1 and December 31. The bonds were purchased on June 1, 2020, by an investor. Required What is the entry to record the issuance of the bond on January 1, 2020? What is the entry to record the purchase of the bond on June 1, 2020? What is the entry to record the first interest payment on July 1, 2020?
Scenario 2 On January 1, 2020, Harvey Inc. made available $100,000 of 20 years, 10% bonds at par value. The bonds pay quaterly interest on April 1, July 1, October 1 and December 31. The bonds were purchased on June 1, 2020, by an investor. Required What is the entry to record the issuance of the bond on January 1, 2020? What is the entry to record the purchase of the bond on June 1, 2020? What is the entry to record the first interest payment on July 1, 2020?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 68E: Exercise Bonds with Annual Interest Payments Kiwi Corporation issued at par $350,000, 9% bonds on...
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