How do bonds pay interest?
On February 1, 2011, Charo Mendez purchased 6% bonds issued by CR Utilities at a cost of $30,000, which is their par value. The bonds pay interest semiannually on July 31 and January 31. For 2011, prepare entries to record Mendez’s July 31 receipt of interest and its December 31 year-end interest accrual. (Do not round your intermediate calculations. Omit the “$” sign in your response.) |
Date | General Journal | Debit | Credi | ||||||||||||||||||||||||||||||
July 31 |
Problem 15-5A Part 2
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