Question
On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $500,000 of 7% bonds, due in 20 years, with
On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $500,000 of 7% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.
Required: 1. If the market interest rate is 7%, the bonds will issue at $500,000. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | January 01, 2024 | Cashselected answer correct | 500,000selected answer correct | |
| Bonds Payableselected answer correct | 500,000 | |||
| 2 | June 30, 2024 | Interest Expenseselected answer correct | ||
| Cashselected answer correct | ||||
| 3 | December 31, 2024 | Interest Expenseselected answer correct | ||
| Cashselected answer correct |
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ACC 120 Wake Tech Financial Accounting W Connect Plus Access
Authors: J. David Spiceland
1st Edition
1308168926, 978-1308168920
