Question

7.) Gareon Conley Company issued $3,000,000 of 10-year, 6% annual interest, bonds payable on March 1, 2018. The bonds are dated January 1, 2018, with interest payable semi-annually every July 1 and January 1. Conley Company maintains their accounting records on a fiscal year ending July 31. The market rate of interest on similar debt instruments was also 6% so the bonds were sold at face (par) value. The journal entry to record the first interest payment on July 1, 2018, would include

8.) On December 1, 2017, Corey Davis Inc. accepted a 6-month $50,000, 12%, note from Cowboys Enterprises. The due date of the note is June 1, 2018. Corey Davis is on a calendar year and prepares adjusting journal entries on December 31, 2017. The journal entry to record receipt of the cash on June 1, 2018 would include

9.) DeShone Kizer Incorporated issued $200,000, 9% annual interest rate, 5-year bonds payable on January 1, 2018. The market rate of interest on similar debt instruments was greater than 9% on the date of issuance, so the selling price of the bonds payable was 97 (97% of face value). Interest is paid semiannually on every July1 and January 1. Kizer Inc. maintains their accounting records on a calendar year ending December 31. The journal entry for the payment of interest on January 1, 2020 would include

Answer 1