Asked by Jessica Tufts on Jul 15, 2024
Verified
On May 1, Cedar Inc. purchases $100,000 of 10-year, Madison Corporation 6% bonds dated March 1 at 100 plus accrued interest. What entry would Cedar record when receiving its semiannual interest on September 1?
Semiannual Interest
Interest calculated or paid twice a year on loans, bonds, or savings accounts.
Bonds Dated
The date specified in the bond document when the bond was issued, important for determining interest payments and maturity.
- Familiarize oneself with the technique for journalizing transactions associated with bonds and stocks.
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Learning Objectives
- Familiarize oneself with the technique for journalizing transactions associated with bonds and stocks.