On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at $2,099,023. This price resulted in an effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Sheridan has a calendar year end. (a) Your answer is correct. Prepare the journal entry to record the issue of the bonds on January 1, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Jan. 1, 2022 Cash Bonds Payable Debit 2099023 Credit 2099023

On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at $2,099,023. This price resulted in an effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Sheridan has a calendar year end. (a) Your answer is correct. Prepare the journal entry to record the issue of the bonds on January 1, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Jan. 1, 2022 Cash Bonds Payable Debit 2099023 Credit 2099023

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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