8, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021)2. Record the first semiannual interest payment. (June 30, 2021)3. Record the second semiannual interest payment. (Dec. 31, 2021) **Required Information**The following information applies to the questions displayed below.Mi-T-M Corporation is a leading designer and manufacturer of high-quality industrial equipment. Mi-T-M Corporation issues $540,000 of 7% bonds on January 1, 2021, to finance operations. The bonds are due in 10 years. Interest is paid semiannually on June 30 and December 31.**Required:**1. If the market interest rate is 7%, the bonds will issue at $540,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. *(If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)* [Button: View transaction list]**Journal Entry Worksheet**[Tab Navigation: 1, 2, 3]*Instruction:* Record the bond issue.Note: Enter debits before credits.| Date | General Journal | Debit | Credit ||---------------|-----------------|-------|--------|| January 01, 2021 | | | |**Explanation:**This worksheet provides a format for inputting journal entries related to the issuance of bonds and the interest payments on specified dates. Users need to fill out entries for bond issuance and semiannual interest payments, following the instruction to enter debits before credits.

Formula: Interest expense = Bond value x Time period x interest rate.

Answered: , Journal entry worksheet: 1. Record…

, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021) 2. Record the first semiannual interest payment. (June 30, 2021) 3. Record the second semiannual interest payment. (Dec. 31, 2021)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

8, Journal entry worksheet:

1. Record the bond issue. (Jan. 01, 2021)
2. Record the first semiannual interest payment. (June 30, 2021)
3. Record the second semiannual interest payment. (Dec. 31, 2021)

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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