Riot Company issued $500,000, 15-year, 7% bonds at 96. Instructions (a) Prepare the journal entry to record

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Riot Company issued $500,000, 15-year, 7% bonds at 96.

Instructions

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2014.

(b) Suppose the remaining Discount on Bonds Payable was $12,000 on December 31, 2019. Show the balance sheet presentation on this date.

(c) Explain why the bonds sold at a price below the face amount.

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Accounting Tools For Business Decision Making

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Authors: Kimmel, Wetlands, Kieso

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Riot Company issued $500,000, 15-year, 7% bonds at 96. Instructions (a) Prepare the journal entry to record

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Accounting Tools For Business Decision Making

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