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Explain please Practice Problem Set 1 On October 1, 2016, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were dated October
Explain please
Practice Problem Set 1 On October 1, 2016, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Prepare a tabular summary to record the issuance of the bonds and the adjustments to record the accrual of interest on December 31, 2016. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities + Paid-in-Capital = Bonds. Pay. + Interest Pay. + Common Stock + Stockholders' Equity Retained Earnings Revenue Expense Dividend Cash Oct. 1 $ $ $ Dec. 31 Interest expenseStep by Step Solution
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