question archive extend to IV Morten Corporation Statement of Financial Position (partial) December 31, 2008 Non-current liabilities Bonds payable, 9% due January 1, 2014 $3,800,000 Current liabilities 180
extend to IV Morten Corporation Statement of Financial Position (partial) December 31, 2008 Non-current liabilities Bonds payable, 9% due January 1, 2014 $3,800,000 Current liabilities 180
Subject:AccountingPrice: Bought3
extend to IV Morten Corporation Statement of Financial Position (partial) December 31, 2008 Non-current liabilities Bonds payable, 9% due January 1, 2014 $3,800,000 Current liabilities 180.000 Bond interest payable (for 6 months from July1 to December 31) Interest is payable semiannually on January 1 and July 1. The bonds are callable on any semi-annual date. Morten uses straight-line for any bond premium or discount. Form December 31, 2008, the bonds will be outstanding for an additional 5 years. Instructions (a) Prepare the entry to pay the interest due on July 1, 2011, assuming no accrual of interest on June 30. (b) Assuming that on July 1, 2011, after paying interest, Morten corporation decides to redeem fourth of the bond back at 105. Recall the redemption of the bonds. (c) Assuming that on July 1, 2013, after paying interest, Morten corporation decides to redeem half of the bond back at 95. Recall the redemption of the bonds. (d) Prepare the adjusting entry at December 31, 2013.
