In order to raise capital, John Deere issued five year, $50,000, 7% bonds on January 2, 2020, with the interest payable annually each Dec 31. The issue price was $54,330 based on an 5% market rate. Rounding calculations to the nearest whole dollar, what is the journal entries records the 2020 interest expense?

In order to raise capital, John Deere issued five year, $50,000, 7% bonds on January 2, 2020, with the interest payable annually each Dec 31. The issue price was $54,330 based on an 5% market rate. Rounding calculations to the nearest whole dollar, what is the journal entries records the 2020 interest expense?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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