Question
On January 1, 2019, Cinderella Corp. issued a 5 year, 7%, $500,000 bond for 95. The bond will pay interest semi-annually (July 1 st and
On January 1, 2019, Cinderella Corp. issued a 5 year, 7%, $500,000 bond for 95. The bond will pay interest semi-annually (July 1st and January 1st). The market rate is 8%. The company uses the effective interest rate method.
Required
Prepare the necessary journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31. Explanations are not required. Do not combine the entries do each one separately (Hint 3 entries). Show in format below:
DATE ACCOUNT DEBIT CREDIT
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
3rd Edition
0894137409, 978-0894137402
