Question
On January 1, 2017, Nash Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were issued for $584,545, and pay interest each
On January 1, 2017, Nash Corporation issued $550,000 of 7% bonds, due in 8 years. The bonds were issued for $584,545, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the companys journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Nash uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer 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.)
| No. | Date | Account Titles and Explanation | Debit | Credit |
| (a) | January 1, 2017 | |||
| (b) | July 1, 2017 | |||
| (c) | December 31, 2017 | |||
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The Why And How Of Auditing Auditing Made Easy
Authors: Charles B. Hall
1st Edition
0578519739, 978-0578519739
