SchoolFirst9811

25.06.2020 • 

Business

Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $83,900,000 of 10-year, 14% bonds at a market (effective) interest rate of 12%, receiving cash of $93,522,860. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the interest method.
b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the interest method.

3. Determine the total interest expense for Year 1.

Ответ:

kelseydavid69

06.05.2021

Business

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All public accountants must follow the generally accepted accounting principles to ensure ethics-related issues are complied with, allowing the accountants to maintain certification with the AICPA.

The generally accepted accounting principles known as GAAP are standards that accountants and companies must follow. These provide and improve the clarity of the documents that are financially accepted by all business. 

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