On January 1, 2016, Files Co. issued $400,000 of five-year, 6 percent bonds at 97. Interest is
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On January 1, 2016, Files Co. issued $400,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for 2016 and 2017.
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Files Co General Journal Date Account Titles Debit Credit 2016 Jan 1 Cash 1 388000 Di...View the full answer
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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