Question
A. On January 1, 2022, Blossom Company issued $555,000, 14%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal
A. On January 1, 2022, Blossom Company issued $555,000, 14%, 10-year bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Jan. 1, 2022 |
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B.Prepare the journal entry to record the accrual of interest on December 31, 2022
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Dec. 31, 2022 |
| ||
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C.Prepare the journal entry to record the payment of interest on January 1, 2023.
| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| Jan. 1, 2023 | |||
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
