Sanderling Corporation issued $400,000 of 5-year, 6% bonds at face value on August 1, Year 1. Interest is paid annually on July 31. The company has a calendar year-end.Required:a) Prepare the journal entry to record the issuance of the bonds.b) Prepare the adjusting entry required on December 31, Year 1. (Hint: Consider the interest that is owed to bondholders on this date.)c) Prepare the journal entry to record the first interest payment on July 31, Year 2.
What will be an ideal response?
a)
| Cash | 400,000 | ? |
| Bonds payable | ? | 400,000 |
b)
| Interest expense | 10,000 | ? |
| Interest payable | ? | 10,000 |
c)
| Interest payable | 10,000 | ? |
| Interest expense | 14,000 | ? |
| Cash | ? | 24,000 |
Although Sanderling pays $24,000 in interest in Year 2, $10,000 of this amount was already recognized and accrued at the end of Year 1; the remaining $14,000 (or $24,000 ? $10,000) is an expense in Year 2.
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Answer the following statements true (T) or false (F)
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What will be an ideal response?
A company is most likely doomed to failure in a foreign country if it__________
Fill in the blanks with correct word.