Chapter 8
Non-Current Liabilities
395
AP-8A (
3
5
)
On June 1, 2016, Glacier Inc. issued $100,000 worth of bonds with a 6% interest rate. The
bonds were issued at par. Interest is payable semi-annually on December 1 and June 1. The
bonds mature on June 1, 2036. Glacier Inc. has a December 31 year-end.
Required
Prepare journal entries to record the following.
a) the issuance of the bonds on June 1, 2016
b) the payment of interest on December 1, 2016
c) the required adjustment on December 31, 2016
d) the payment of interest on June 1, 2017
e) the maturity of the bonds on June 1, 2036, assuming the interest has already been paid
Date
Account Title and Explanation
Debit
Credit
