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Northland Corporation had $400,000, 10-year bonds outstanding on December 31 of this year (end of the fiscal year). Interest is payable each December 31. The
Northland Corporation had $400,000, 10-year bonds outstanding on December 31 of this year (end of the fiscal year). Interest is payable each December 31. The bonds were issued (sold) on January 1 of this year. The annual financial statements for this year showed the following: Statement of earnings Bond interest expense (straight-line amortization) Statement of financial position Bonds payable (net liability) Required: 1-a. What was the issue price of the bonds? Issue price $ 33,200 389,200 1-b. Prepare the journal entry to record the issuance of the bonds on January 1, using a discount account. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the issuance of bond at a discount. Note: Enter debits before credits. Date January 011 General Journal Debit Credit Record entry Clear entry View general journal
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