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Kingbird Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $48,663. The implicit interest rate is
Kingbird Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $48,663. The implicit interest rate is 11%. Prepare Kingbirds journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Brief Exercise 14-11 Your answer is partially correct. Try again. Kingbird Corporation issued a 5-year, $82,000, zero-interest-bearing note to Brown Company on January 1, 2017, and received cash of $48,663. The implicit interest rate is 11%. Prepare Kingbird's journal entries for (a) the January 1 issuance and (b) the December 31 recognition of interest. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) January 1, 2017 Cash 48663|| Bonds Payable | Discount on Bonds Payable 82000 (b) December 31, 2017 TInterest Expense 5353 Bonds Payable 5353 Click if you would like to Show Work for this question: Open Show WorkStep by Step Solution
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