Accounting questions concerning bonds for ACC/291; BE10-10 for Halloway Company BE10-11 for Lemay Company
BE10-10 Halloway Company has issued three different bonds during 2011. Interest is payable semiannually on each of these bonds.
1. OnJanuary1,2011,1,000,8%,5-year,$1,000bondsdatedJanuary1,2011,wereissuedatface value.
2. OnJuly1,$800,000,9%,5-yearbondsdatedJuly1,2011,wereissuedat102. 3. OnSeptember1,$200,000,7%,5-yearbondsdatedSeptember1,2011,wereissuedat98.
Prepare the journal entry to record each bond transaction at the date of issuance.
BE10-11 The balance sheet for Lemay Company reports the following information on July 1, 2011.
Long-term liabilities Bonds payable $1,000,000 Less: Discount on bonds payable 60,000 $940,000
Lemay decides to redeem these bonds at 101 after paying semiannual interest. Prepare the jour- nal entry to record the redemption on July 1, 2011.
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