P10-3B The following section is taken from Lois Corp.”s balance sheet at December 31, 2011.

Observation Paper
July 6, 2020
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July 6, 2020

P10-3B The following section is taken from Lois Corp."s balance sheet at December 31, 2011.

Current liabilities Interest payable $ 84,000 Long-term liabilities Bonds payable (7%, due January 1, 2016) 1,200,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date .

Instructions

(a) Journalize the payment of the bond interest on January 1, 2012.

(b) Assume that on January 1, 2012, after paying interest, Lois Corp. calls bonds having a face value of $300,000. The call price is 104. Record the redemption of the bonds.

(c) Prepare the adjusting entry on December 31, 2012, to accrue the interest on the remaining bonds.

 

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P10-3B The following section is taken from Lois Corp.”s balance sheet at December 31, 2011. was first posted on July 6, 2020 at 1:42 am.
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