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On January 1, 2021, White Water issues $560,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year. Assuming
On January 1, 2021, White Water issues $560,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $500,674.
Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022.
Answer is not complete. No Date General Journal Debit Credit 1 500,674 January 01, 2021 Cash Discount on Bonds Payable Bonds Payable 59,326 560,000 2. December 31, 202 Interest Expense 33,600 Discount on Bonds Payable 724 x Cash 33,600 3 December 31, 202 Interest Expense 33,600 Cash 33,600Step by Step Solution
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