Question
Cheyenne Corp, sold $2,660,000, 8%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1.
Cheyenne Corp, sold $2,660,000, 8%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Cheyenne Corp. uses the straight-line method to amortize bond premium or discount. (a) Your answer is correct Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order plesented in the problem.) Date Account Titles and Explanation Jan 1, 2022 Cash Debit Credit 2793000 Bonds Payable Premium on Bonds Payable Dec. 31.2022 Interest Expense 184200 2600 133
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