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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $26,700,000 of five-year, 9%
Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method
On the first day of its fiscal year, Chin Company issued $26,700,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin receiving cash of $25,669,056.
a. Journalize the entries to record the following:
- Issuance of the bonds.
- First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
- Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
If an amount box does not require an entry, leave it blank.
- Accounts Payable
- Bonds Payable
- Cash
- Interest Expense
- Interest Payable
- Premium on Bonds Payable
1. | fill in the blank d611d4035fb8ff2_2 | fill in the blank d611d4035fb8ff2_3 | |
fill in the blank d611d4035fb8ff2_5 | fill in the blank d611d4035fb8ff2_6 | ||
fill in the blank d611d4035fb8ff2_8 | fill in the blank d611d4035fb8ff2_9 | ||
2. | fill in the blank d611d4035fb8ff2_11 | fill in the blank d611d4035fb8ff2_12 | |
fill in the blank d611d4035fb8ff2_14 | fill in the blank d611d4035fb8ff2_15 | ||
fill in the blank d611d4035fb8ff2_17 | fill in the blank d611d4035fb8ff2_18 | ||
3. | fill in the blank d611d4035fb8ff2_20 | fill in the blank d611d4035fb8ff2_21 | |
fill in the blank d611d4035fb8ff2_23 | fill in the blank d611d4035fb8ff2_24 | ||
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