Question
On January 1, 2019, Smalls Baseball Company issued 1,000 bonds to build a new baseball diamond, each with a face value of $1,000, for 102.7323.The
On January 1, 2019, Smalls Baseball Company issued 1,000 bonds to build a new baseball diamond, each with a face value of $1,000, for 102.7323.The stated interest is 3.8%, and the market rate at the time the bonds were issued was 3.2%.The bonds are due on January 1, 2024 (5 year term) with interest payments due annually every January 1st.The company received cash from the sale of the bonds.
Record the complete journal entry for the sale of the bonds below:
Using the effective-interest method calculate and record theDecember 31, 2020journal entry for the bond interest expense including premium/discount amortization, and the payable.
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