On January 1, when the market interest rate was 8 percent, Seton Corporation completed a $160,000, 7 percent bond Issue for $149,265. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. 10-15 (Algo) Part 1 and 2 equired: & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) No 1 Date January 01 General Journal Cash Discount on Bonds Payable Bonds Payable 000 Debit 149,265 10,735 Credit 160,000

On January 1, when the market interest rate was 8 percent, Seton Corporation completed a $160,000, 7 percent bond Issue for $149,265. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. 10-15 (Algo) Part 1 and 2 equired: & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) No 1 Date January 01 General Journal Cash Discount on Bonds Payable Bonds Payable 000 Debit 149,265 10,735 Credit 160,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

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

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