Question
Flounder Company issued $ 790,000, 9%, 10-year bonds on January 1, 2020, at 106. Interest is payable annually. Flounder uses the effective-interest method of amortization
Flounder Company issued $ 790,000, 9%, 10-year bonds on January 1, 2020, at 106. Interest is payable annually. Flounder uses the effective-interest method of amortization and has a calendar year-end. Assume the bonds were issued for an effective interest rate of 8%. Prepare all journal entries made in 2020 related to the bond issue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) 2020 Account Titles and Explanation Debit Credit enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on January 1 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount enter an account title for the journal entry on december 31 enter a debit amount enter a credit amount enter an account title for the journal entry on December 31 enter a debit amount enter a credit amount List of Accounts
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