Dolby, Inc. issued a $5,000 face value, 10%, five-year bond at 98. What will be the journal entries at the maturity of the bond? The bonds have semiannual interest, and the company uses the straight-line method of discount amortization
What will be an ideal response
Interest Expense 260
Cash ($5,000 x 10% x 1/2 ) 250
Discount on Bonds Payable ($5,000 x 2%) / 10 10
Bond Payable 5,000
Cash 5,000
Business
You might also like to view...
Which of the following would NOT be considered a situational influence on consumer decision making?
A) the purchase environment B) the digital environment C) time D) lifestyle E) context
Business
An uncanny truth in the U.S. equity market is that over time the price-earnings multiple has been almost constant, ranging fewer than two points up or down from the average over the past 130 years
Indicate whether the statement is true or false
Business