On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $531,269. Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1. DATE GENERAL JOURNAL DEBIT CREDIT Jan 1 June 30 Dec 31
On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $531,269. Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1. DATE GENERAL JOURNAL DEBIT CREDIT Jan 1 June 30 Dec 31
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $531,269.
Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1.
DATE | GENERAL JOURNAL | DEBIT | CREDIT |
Jan 1 | |||
June 30 | |||
Dec 31 |
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