Homework Solutions  
» Home
  

See All Homework
Questions here

Question Description

 
Posted by: Homeworkhelp
Price Quoted by Student: $3
Posted On: 2011-03-07 05:05:07
 
Question

On May 1, 2005, Kidman Enterprises issues bonds dated January 1, 2005, that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31.

 

Exercise 14-9 Recording bond issuance with accrued interest

 

Fundamental Accounting Principles, 7th Ed Larson Wild Chiappetta

 

ANSWER KEY Exercise 14-9 On May 1, 2005, Kidman Enterprises issues bonds dated January 1, 2005, that have a $1,700,000 parvalue

 

Exercise 14-9 On May 1, 2005, Kidman Enterprises issues bonds dated January 1, 2005, that have a $1,700,000 parvalue, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par plus four months’ accrued interest.

1. How much accrued interest do the bond purchasers pay Kidman on May 1, 2005?

2. Prepare journal entries to record (a) the issuance of bonds on May 1, 2005; (b) the first interest

payment on June 30, 2005; and (c) the second interest payment on December 31, 2005.

Check (1) $51,000


Solutions
ANSWER KEY Exercise 14-9 On May 1, 2005, Kidman En
Price $3
Attachment 1: E 14-9 Kidman Enterprises.doc
Solution Posted By: Homeworkhelp    Posted on: 07-03-2011