On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds

Question:

On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. JWS uses the effective-interest method. Prepare the company’s journal entries for

(a) The January 1 issuance,

(b) The July 1 interest payment,

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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