McCartney Corporation had the following bond transactions during the fiscal year 2018:

On January 1, 2018, Cardi Company purchased 20,000 shares
May 5, 2020
Reynolds Corporation’s comparative balance sheets are presented below.
May 5, 2020

McCartney Corporation had the following bond transactions during the fiscal year 2018:

 

  1. On January 1: issued ten $20,000 bonds at 101. The 5-year bonds are dated January 1, 2018. The contract interest rate is 5%. Straight-line amortization method is used. Interest is payable semi-annual on January 1 and July 1.

 

  1. On July 1: McCartney Corporation issued $500,000 of 5%, 10-year bonds. The bonds dated January 1, 2018 were issued at 88, and pay interest on July 1 and January 1. Straight-line amortization method is used.

 

  1. On October 1: issued 10-year bonds $10,000 face value bonds, for $10,985 cash. The bonds have a stated rate of 6%. Straight-line amortization method is used. Interest is payable on October 1 and April 1.

Requirements: general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2018. (Round all calculations to nearest whole dollar.)

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp
%d bloggers like this: