On january 1 issued ten 10 1000 bonds at 102 the 5-year


Frick Corporation had the following bond transactions during the fiscal year 2014:

a. On January 1: issued ten (10), $1,000 bonds at 102. The 5-year bonds, is dated January 1, 2014. The contract interest rate is 6%. Straight-line amortization method is used. Interest is payable semi-annual on January 1 and July 1.

b. On July 1: Frick Corporation issued $500,000 of 10%, 10-year bonds. The bonds dated January 1, 2014 were issued at 88.5, and pay interest on July 1 and January 1. Effective interest rate method is used for these bonds is 12%.

c. On October 1: issued 10-year bonds $10,000 face value bonds, for $10,853 cash. The bonds have a stated rate of 8%, but an effective rate of 6%. Effective-interest method is used. Interest is payable on October 1 and April 1.

Requirements: Prepare all general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2014. (Round all calculations to nearest whole dollar.)

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Financial Accounting: On january 1 issued ten 10 1000 bonds at 102 the 5-year
Reference No:- TGS01067050

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