On February 1, Year 1, a company issued 10% bonds, dated February 1, with a face amount of $930,000. • The bonds sold for $855,382 and mature on January 31, Year 21 (20 years). . The market yield for bonds of similar risk and maturity was 11%. • Interest is paid semiannually on July 31 and January 31. • The company's fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record their issuance by the company on February 1, Year 1, interest on July 31, Year 1 (at the effective rate), adjusting entry to accrue interest on December 31, Year 1 and interest on January 31, Year 2. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. transaction/event, select "No journal entry required" in the first account field. no entry is required for a

On February 1, Year 1, a company issued 10% bonds, dated February 1, with a face amount of $930,000. • The bonds sold for $855,382 and mature on January 31, Year 21 (20 years). . The market yield for bonds of similar risk and maturity was 11%. • Interest is paid semiannually on July 31 and January 31. • The company's fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record their issuance by the company on February 1, Year 1, interest on July 31, Year 1 (at the effective rate), adjusting entry to accrue interest on December 31, Year 1 and interest on January 31, Year 2. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. transaction/event, select "No journal entry required" in the first account field. no entry is required for a

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?
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