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On January 1, 2020, Larkspur Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $539,112, and pay interest each
On January 1, 2020, Larkspur Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $539,112, and pay interest each July 1 and January 1. Larkspur uses the effective-interest method. 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. Assume an effective-interest rate of 10%. (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 o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2020 Cash 539.112 Discount on Blonds Payable 30 BBB tonds Payable 570.000 2020 Internet Expense canh Discount on Bords Payable 1.2020 Interest Expense Interest Payable DO Discount on Donds Payable
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