Question
On January 1, 2020 Ayayai Corporation issued $560,000 of 7% bonds, due in 10 years. The bonds were issued for $601,659 , and pay interest
On January 1, 2020 Ayayai Corporation issued $560,000 of 7% bonds, due in 10 years. The bonds were issued for $601,659 , and pay interest each July 1 and January 1. The effective interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and, (c) the December 31 adjusting entry. Ayayai uses the effective-interest method.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
