Financial Accounting: P11-2B On June 1, 2008 Logsdon Corp issued $1,500,000, 8%, 5-year bonds
Important Reminder!!! There might be other versions of this problem - amounts and dates have been changed - so please make sure you review and compare this tutorial to the problem in your homework. Even with different amounts, format and way of solving the problem is still the same so pleases be guided accordingly. Financial Accounting P11-2B On June 1, 2008 Logsdon Corp issued $1,500,000, 8%, 5-year bonds at face value. The bonds were dated June 1, 2008 and pay interest semiannually on June 1 and December 1. Financial statements are prepared annually on December 31. Instructions a.) Prepare the journal entry to record the issuance of the bonds. b.) Prepare the adjusting entry to record the accrual of interest on Dec 31, 2008 c.) Show the balance sheet presentation on December 31, 2008 d.) Prepare the journal entry to record payment of interest on June 1, 2009, assuming no accrual of interest from January 1, 2009, to June 2009. e.) Prepare the journal entry to record payment of interest on December 1, 2009. f.) Assume that on December 1, 2009 Logsdon calls the bonds at 102. Record the redemption of the bonds.
You'll get 1 file (14.6KB)