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Help with these two problems please! Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $331,000,
Help with these two problems please!
Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $331,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2021, assuming the straight-line method is followed. 2021 Dec. 31 (Record interest expense) Cornerstone Exercise 9-29 (Algorithmic) Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $800,000, 8-year bonds for $889,000. The stated rate of interest was 6% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed. 2023 Dec. 31 (Record interest expense)Step by Step Solution
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
