Question
On January 1, 2025, Head Band Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest
On January 1, 2025, Head Band Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest each July 1 nd January 1. The effective interest rate is 8 %.
Prepare the company's journal entries for (a) the January issuance, (b), the July 1 interest payment, and (c) the December 31 adjusting entry. headland uses the effective- interest method.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
10th Canadian Edition Volume 2
1118300858, 978-1118300855
