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On January 1, 2020, Shamrock Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $558,028, and pay interest each July 1 and January 1. Shamrock uses the effective-interest method.

On January 1, 2020, Shamrock Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $558,028, and pay interest each July 1 and January 1. Shamrock uses the effective-interest method.

FINANCIAL ACCOUNTING
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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On January 1, 2020, Shamrock Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $558,028, and pay interest each July 1 and January 1. Shamrock uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation (a) (b) A Cash Debit SUPPORT
Transcribed Image Text:On January 1, 2020, Shamrock Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were issued for $558,028, and pay interest each July 1 and January 1. Shamrock uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation (a) (b) A Cash Debit SUPPORT
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