Long-term Liabilities And Receiva Recording the Issuance of bonds On March 1, 2004, Grimes Corporation issues $800,000 of 10-year bonds dated January 1, 2004 at par. The bonds have a contract(stated)interest rate of 12% and pay interest semiannual Cash 816.000 Interest expense 16.000 Bonds payable $800.000X0.12x2/12 Continued
Recording the Issuance of Bonds On March 1, 2004, Grimes Corporation issues $800,000 of 10-year bonds dated January 1, 2004 at par. The bonds have a contract (stated) interest rate of 12% and pay interest semiannually. Cash 816,000 Interest Expense 16,000 Bonds Payable 800,000 $800,000 x 0.12 x 2/12 Continued Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Recording the Issuance of bonds On July 1, 2004, Grimes Corporation records the semiannual interest payment Interest Expense 48.000 Cash 48.000 Interest Expense 48000 16.000 $800.000X0.12x6/12 32.000 The balance of $32,000 represents the interest cost since the bonds were issued
Recording the Issuance of Bonds On July 1, 2004, Grimes Corporation records the semiannual interest payment. Interest Expense 48,000 Cash 48,000 $800,000 x 0.12 x 6/12 Interest Expense 48,000 16,000 The balance of $32,000 represents the interest cost since the bonds were issued. 32,000 Intermediate Accounting 11 Long-term Liabilities And Receivables
amortizing Discounts and Premiums
Amortizing Discounts and Premiums Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Issuing bonds at a Discount Straight-Line method Jet company sells bonds for $92,. 39 on January 1, 2004. The bonds have a face value of S100,000 and a 12% stated annual interest rate. Interest is paid semiannually and the bonds mature on december 31. 2008 Cash 92976.39 Discount on bonds payable 7023.61 Bonds payable 100.000.00 Continued
Issuing Bonds at a Discount Jet Company sells bonds for $92,976.39 on January 1, 2004. The bonds have a face value of $100,000 and a 12% stated annual interest rate. Interest is paid semiannually and the bonds mature on December 31, 2008. Cash 92,976.39 Discount on Bonds Payable 7,023.61 Bonds Payable 100,000.00 Continued Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables
Long-term Liabilities And Receiva Issuing Bonds at a Discount Straight-Line method Jet company records the first interest payment on June 30. 2004 Interest Expense 6.702.36 Discount on bonds payable 702.36 Cash $6.000+$702.36 1000036110
Jet Company records the first interest payment on June 30, 2004. Interest Expense 6,702.36 Discount on Bonds Payable 702.36 Cash 6,000.00 $6,000 + $702.36 Issuing Bonds at a Discount $100,000 x 0.12 x 1/2 $7,023.61 ÷ 10 Straight-Line Method Intermediate Accounting 11 Long-term Liabilities And Receivables