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mortizes any bond discount or premium using the effective o yield 9%, provide journal entries to be made at each of the January 1, for issuance of bonds. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar.

mortizes any bond discount or premium using the effective o yield 9%, provide journal entries to be made at each of the January 1, for issuance of bonds. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Discount on Bonds Payable Bonds Payable To record bond issuance. b. June 30 Interest Expense Cash Discount on Bonds Payable To record interest payment. > > > Dr. 54,597 5,403 0 2,457 0 0 Cr. 0✔ 0x 60,000✔ 0x 2,400 ✓ 57 x
Transcribed Image Text:Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Discount on Bonds Payable Bonds Payable To record bond issuance. b. June 30 Interest Expense Cash Discount on Bonds Payable To record interest payment. > > > Dr. 54,597 5,403 0 2,457 0 0 Cr. 0✔ 0x 60,000✔ 0x 2,400 ✓ 57 x
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