Chapter 8
Non-Current Liabilities
401
Date
Account Title and Explanation
Debit
Credit
AP-13A (
2
4
5
)
Wilson Corp. is planning to build a new tennis court for the community. To complete the
project, the company is issuing $1,000,000 worth of five-year, 10% bonds with interest paid
semi-annually.
On May 1, 2016, the company issued the bonds. The market rate on the date of issuance was
12%.
