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Mathematics, 06.05.2020 23:04 keyceebhe7621
On May 1, 2018, Kusmaul Corp. issued $ 600,000, 8%, 5-year bonds at face value. The bonds were dated May 1, 2018, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.
Instructions:
(a) Prepare the journal entry to record the issuance of the bonds.
(b) Prepare the adjusting entry to record the accrual of interest on December 31, 2018.
(c) Show the balance sheet presentation on December 31, 2018.
(d) Prepare the journal entry to record payment of interest on May 1, 2019, assuming no accrual
of interest from January 1, 2019, to May 1, 2019.
(e) Prepare the journal entry to record payment of interest on November 1, 2019
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On May 1, 2018, Kusmaul Corp. issued $ 600,000, 8%, 5-year bonds at face value. The bonds were dated...
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