Question
2. Baker School Disitrict sell $200,000, 6%, 10 Yr bonds on Jan. 1. Interest payment dates are Jan. 1 and July 1. The bonds are
2. Baker School Disitrict sell $200,000, 6%, 10 Yr bonds on Jan. 1. Interest payment dates are Jan. 1 and July 1. The bonds are sold for $185,788. Prepare journal entries for the issuer. First use the effective-rate method. Market rate is 7%.
a. Sale on Jan 1 Jan 1 entry. Yr 2
b. July 1 entry July 1 entry. Yr 2
c. Oct 1 entry Yr 1 - End of Fiscal Year
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
