Parul Mahajan\'s Birthday US Kieso, Intermediate Accounting, 16e ACCOUNTING 1 &
ID: 2407272 • Letter: P
Question
Parul Mahajan's Birthday US Kieso, Intermediate Accounting, 16e ACCOUNTING 1 & ? (310/311/312) & Practice Gradebook ORION Downloadable Textbook Brief Exercise 14-2 The Metlock Company issued $250,000 of 109% bonds on January 1, 2017. The bonds are due January 1, 2022, with Interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Metlock's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry Is required, select "No Entry for the account titles and enter o for the amounts. Credlt account titles are automatically Indented when amount is entered. Do not Indent manually. Round Intermedlate calculations to 5 decimal places, e.g. 1.251247 and Anal answer to o decimal places, e.g. 38,548.) Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT 9 MacBook Pro F6 8 3 5 6Explanation / Answer
Matlock company issued $2,50,000 of 10% bonds on january 1,2017.
Interest will be payable on july1 and january 1.
The bonds are issued at face value.
Issance of bond :
Interest payment :
Calculation of interest = $250000*10%*6/12 = $12,500
12500
December 31st adjusting entry :
12500
Date Accounts title Debit($) Credit($) Jan-1 Cash A/c Dr 250000 To bonds Payable 250000 (being bonde were issued at face value )