Don't use AI On January 31, 2021, B Corp. issued $800,000 face value, 12% bonds for $800,000 cash. The bonds are dated December31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31.What amount of accrued interest payable should B report in its September 30, 2021, balance sheet?Multiple Choicea. $24,000.b. $48,000.c. $72,000.d. $64,000.

Part 2: ExplanationStep 1: Understanding the bond issuance and terms- B Corp. issued $800,000 face…

Answered: On January 31, 2021, B Corp. issued…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1RE

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Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
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