On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue wasdated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at facevalue.a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds.b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interestpayment.
On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue wasdated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at facevalue.a. Prepare the journal entry at April 30, 2011, to record the sale of the bonds.b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interestpayment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,
30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was
dated March 31, 2011, but the bonds were not issued until April 30, 2011. They were issued at face
value.
a. Prepare the
b. Prepare the journal entry at September 30, 2011, to record the semiannual bond interest
payment.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education