Question
On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,231, and pay interest each
On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,231, and pay interest each July 1 and January 1. JWS uses the effective-interest method. Prepare the companys journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%.
| No. | Date | Account Titles and Explanation | Debit | Credit |
| (a) | |
| | ||||
| (b) |
| (c) |
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Pioneers Of A Profession Chartered Accountants To 1879
Authors: Jas. C. Stewart
1st Edition
0367532557, 9780367532550
