FINANCIAL ACCOUNTING
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[The following information applies to the questions displayed below.] show calculations
On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $436,785.
2. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024.
Transcribed Image Text:Journal entry worksheet
1
2
Record the second semiannual interest payment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
December 31, 2024 Interest Expense
Cash
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet
1
2
Record the first semiannual interest payment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
June 30, 2024
Interest Expense
Cash
Record entry
Clear entry
View general journal
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