On May 1, 2012, Chance Corp. issued $559,100, 8%, 5-year bonds at - 10382

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AP15-1A


 

On May 1, 2012, Chance Corp. issued $559,100, 8%, 5-year bonds at face value. The bonds were dated May 1, 2012, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.

 

 

 


Your answer is correct.

 

 

 

Prepare the journal entry to record the issuance of the bonds.

 

Prepare the adjusting entry to record the accrual of interest on December 31, 2012. (Round answers to 0 decimal places.)

 

Prepare the journal entry to record payment of interest on May 1, 2013, assuming no accrual of interest from January 1, 2013, to May 1, 2013. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)

 

Assume that on November 1, 2013, Chance calls the bonds at 101. Record the redemption of the bonds. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)

 

 

 

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