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28 Sep 2019
Ace Brick companyissued $100,000 of 5-year bonds. The bonds were issued at par onJanuary 1, 20X1, and bear interest at a rate of 8% per annum,payable semiannually. (a) Prepare the journal entry torecord the bond issue on January, 20X1. (b) Prepare the journal entry thatAce would record on each interest date. (c) Prepare the journal entry thatAce would record at maturity of the bonds. (d) How much cash flowed "in" and"out" on this bond issued, and how does the difference compare tototal interest expense that was recognized?
| Ace Brick companyissued $100,000 of 5-year bonds. The bonds were issued at par onJanuary 1, 20X1, and bear interest at a rate of 8% per annum,payable semiannually. | ||
| (a) | Prepare the journal entry torecord the bond issue on January, 20X1. | |
| (b) | Prepare the journal entry thatAce would record on each interest date. | |
| (c) | Prepare the journal entry thatAce would record at maturity of the bonds. | |
| (d) | How much cash flowed "in" and"out" on this bond issued, and how does the difference compare tototal interest expense that was recognized? | |
Jean KeelingLv2
28 Sep 2019
Related questions
| Ace Brick companyissued $100,000 of 5-year bonds. The bonds were issued at par onJanuary 1, 20X1, and bear interest at a rate of 8% per annum,payable semiannually. | ||
| (a) | Prepare the journal entry torecord the bond issue on January, 20X1. | |
| (b) | Prepare the journal entry thatAce would record on each interest date. | |
| (c) | Prepare the journal entry thatAce would record at maturity of the bonds. | |
| (d) | How much cash flowed "in" and"out" on this bond issued, and how does the difference compare tototal interest expense that was recognized? | |
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