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On April 1, Northshore Inc. issued 20-year, 4 percent bonds with a maturity value of $5,250,000. The bonds sell at 96.00 and pay interest
On April 1, Northshore Inc. issued 20-year, 4 percent bonds with a maturity value of $5,250,000. The bonds sell at 96.00 and pay interest on September 30 and March 31. Northshore Inc. amortizes bond discounts by the straight-line method. Required a. Record the issuance of the bonds on April 1. (Record debits first, then credits. Exclude explanations from the journal entry.) Journal Entry Accounts Date Apr. 1 Cash Discount on Bonds Payable Bonds Payable Debit Credit b. Record the payment of semi-annual interest on September 30. (Round your answers to the nearest whole dollar.) Date Journal Entry Accounts Sep. 30 Interest Expense Discount on Bonds Payable Cash Debit Credit c. Record the interest accrual on December 31. (Hold all decimals in interim calculations. Round your final answers to the nearest whole dollar.) Journal Entry Date Dec. 31 Interest Expense Accounts Discount on Bonds Payable Interest Payable Debit Credit Required Record (a) the issuance of the bonds on April 1, (b) the semi-annual interest payment on September 30, and (c) the interest accrual on December 31. Print Done
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