Yancy Corp. issued 6% seven-year bonds payable with a face amount of $110,000 when the market interest

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Yancy Corp. issued 6% seven-year bonds payable with a face amount of $110,000 when the market interest rate was 6%. Yancy’s fiscal year-end is December 31. The bonds pay interest on January 1 and July 1. Journalize the following transactions for Yancy. Include an explanation for each entry.

a. Issuance of the bonds payable at par on July 1, 2018

b. Accrual of interest expense on December 31, 2018

c. Payment of cash interest on January 1, 2019

d. Payment of the bonds payable at maturity (give the date)

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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