Question
On February 1, 2016, Sanford & Son issued 12% bonds dated February 1, 2016, with a face amount of $190,000. The bonds sold for $222,604
On February 1, 2016, Sanford & Son issued 12% bonds dated February 1, 2016, with a face amount of $190,000. The bonds sold for $222,604 and mature in 20 years. The effective interest rate for these bonds was 10%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar.) |
1. Prepare the journal entry to record the bond issuance on February 1, 2016. | ||||
2. Prepare the entry to record interest on July 31, 2016, using the straight-line method.
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