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  • The Board of Directors of Farrell Communications LTD Authorizes The

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    Miroslav Gegoski
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    The board of Farrell Communications Ltd authorized the issuance of $10 million in 6% 20-year bonds maturing on April 30, 2017. Interest is paid semi-annually on March 31 and September 30. The bonds were issued at par through an underwriter. Farrell's fiscal year ends on December 31. Journal entries are required to record the bond issuance, interest payments on 9/30/17 and 3/31/18, and accrual of interest on 12/31/17. Interest payable and bonds payable balances on Farrell's 12/31/17 balance sheet are also required. Accrual of interest is needed on 4/30 and 12/31 in 2017 to properly record

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    The Board of Directors of Farrell Communications Ltd Authorizes The

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    The Board of Directors of Farrell Communications Ltd Authorizes The

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    The board of Farrell Communications Ltd authorized the issuance of $10 million in 6% 20-year bonds maturing on April 30, 2017. Interest is paid semi-annually on March 31 and September 30. The bonds were issued at par through an underwriter. Farrell's fiscal year ends on December 31. Journal entries are required to record the bond issuance, interest payments on 9/30/17 and 3/31/18, and accrual of interest on 12/31/17. Interest payable and bonds payable balances on Farrell's 12/31/17 balance sheet are also required. Accrual of interest is needed on 4/30 and 12/31 in 2017 to properly record

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    © All Rights Reserved
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    8 views1 page

    The Board of Directors of Farrell Communications LTD Authorizes The

    Uploaded by

    Miroslav Gegoski
    The board of Farrell Communications Ltd authorized the issuance of $10 million in 6% 20-year bonds maturing on April 30, 2017. Interest is paid semi-annually on March 31 and September 30. The bonds were issued at par through an underwriter. Farrell's fiscal year ends on December 31. Journal entries are required to record the bond issuance, interest payments on 9/30/17 and 3/31/18, and accrual of interest on 12/31/17. Interest payable and bonds payable balances on Farrell's 12/31/17 balance sheet are also required. Accrual of interest is needed on 4/30 and 12/31 in 2017 to properly record

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    The board of directors of Farrell Communications Ltd

    authorizes the #8400


    The board of directors of Farrell Communications Ltd authorizes the

    The board of directors of Farrell Communications Ltd. authorizes the issuance of 6 percent,
    20-year bonds with a maturity value of $10,000,000. The semi-annual interest dates are March
    31 and September 30. The bonds are issued through an underwriter on April 30, 2017, at par
    plus accrued interest. Farrell's year end is December 31.

    Required

    1. Journalize the following transactions:

    a. Issuance of the bonds on April 30, 2017.

    b. Payment of interest on September 30, 2017.

    c. Accrual of interest on December 31, 2017.

    d. Payment of interest on March 31, 2018.

    2. Report interest payable and bonds payable as they would appear on the Farrell
    Communications Ltd. balance sheet at December 31, 2017.

    3. Why do we need to accrue interest on April 30 and again on December 31, twice in 2017?

    The board of directors of Farrell Communications Ltd authorizes the

    ANSWER
    http://paperinstant.com/downloads/the-board-of-directors-of-farrell-communications-ltd-
    authorizes-the/

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