Chapter 8
Non-Current Liabilities
415
AP-8B (
3
5
)
On November 1, 2016, Breyer Inc. issued $800,000 worth of bonds with a 9% interest rate. The
bonds were issued at par. Interest is payable annually on October 31. The bonds mature on
October 31, 2026. Breyer Inc. has a December 31 year-end.
Required
Prepare the necessary journal entries to record the following.
a) The issuance of the bonds payable on November 1, 2016.
b) The required adjustment on December 31, 2016.
c) The payment of interest on October 31, 2017.
d) The maturity of the bond on October 31, 2026 with interest.
Date
Account Title and Explanation
Debit
Credit
