Accounting for Bonds Payable On January 1, 2015, Crabb & Co.issued 10-year bonds with a total face value of $500,000. The bondrequires annual interest payments on December 31 at a stated rateof 6%. Bonds with similar features are discounted in the market at8%
.1. DATE ACCOUNT NAME DEBIT CREDIT BALANCE SHEET INCOME STMT A =L + E R - E 01/01/15
DATE | ACCOUNT NAME | DEBIT | CREDIT | BALANCE SHEET | INCOME STMT |
A | = | L | + | E | R | - | E |
01/01/15 | | | | | | | | |
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2.Prepare the entry at 12/31/15 to record interest expense, cashpaid, and discount amortization. DATE ACCOUNT NAME DEBIT CREDITBALANCE SHEET INCOME STMT A = L + E R - E 12/31/15
DATE | ACCOUNT NAME | DEBIT | CREDIT | BALANCE SHEET | INCOME STMT |
A | = | L | + | E | R | - | E |
12/31/15 | | | | | | | | |
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