Question
Blossom Ltd., a private company following ASPE issued a $120,000, 3-year, zero-interest bond dated January 1, 2020. The market interest rate for similar bonds was
Blossom Ltd., a private company following ASPE issued a $120,000, 3-year, zero-interest bond dated January 1, 2020. The market interest rate for similar bonds was 8%. Assume the company used the straight-line method of amortization. Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2020. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started