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On March 1, 20A, Warner Corporation, a Calendar Year Company

Question 26

Essay

On March 1, 20A, Warner Corporation, a calendar year company, issued 40 of its $1,000, 8%,
five-year bonds at par. The bonds were dated March 1, 20A, and the first interest payment will be on February 28, 20B. The accounting period ends December 31.
Part A: Complete the journal entry grid for each of the following dates (round to the nearest dollar)
On March 1, 20A, Warner Corporation, a calendar year company, issued 40 of its $1,000, 8%, five-year bonds at par. The bonds were dated March 1, 20A, and the first interest payment will be on February 28, 20B. The accounting period ends December 31. Part A: Complete the journal entry grid for each of the following dates (round to the nearest dollar) Part B: Discuss why an entry is needed on December 31, 20A Part B: Discuss why an entry is needed on December 31, 20A

Correct Answer:

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blured image Computations:
(a) Sold at par, $40,000
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