Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. berol corporation sold 20 year bonds on january 1,

Berol corporation sold 20 year bonds on January 1,2010. The face value of the bonds...

70.2K

Verified Solution

Question

Accounting

Berol corporation sold 20 year bonds on January 1,2010. The face value of the bonds was 100,000 dollars, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Berol received 91,526 dollars in return for the issuance of the bonds when the market rate was 10%. Any premium or discount is amortized using the effective interest Method.

1. Prepare the journal entry to record the sale of the bonds on jan 1,2010 and the proper balance sheet presentation on this date.

2. Prepare the journal entry to record interest expense on December 31,2010 and the proper balance sheet presentation on this date.

Thanks!

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students