Question
Brief Exercise 14-6 On January 1, 2017, Teal Corporation issued $640,000of9% bonds, due in8years. The bonds were issued for $605,318, and pay interest each July
Brief Exercise 14-6
On January 1, 2017, Teal Corporation issued $640,000of9% bonds, due in8years. The bonds were issued for $605,318, and pay interest each July 1 and January 1. Teal uses the effective-interest method.
Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of10%.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
