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On January 1, 2025, Windsor Corporation issued $620,000 of 9% bonds, due in 8 years. The bonds were issued for $656,123, and pay interest
On January 1, 2025, Windsor Corporation issued $620,000 of 9% bonds, due in 8 years. The bonds were issued for $656,123, and pay interest each July 1 and January 1. The effective-interest rate is 8%. 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. Windsor uses the effective-interest method. (Round answers to O decimal places, eg. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation 1,2025 Cash Bonds Payable Premium on Bonds Payable y 1.2025 Interest Expense Debit 656123 24800 Premium on Bonds Payable 3100 Cash c.31.2025 Interest Expense Premium on Bonds Payable Interest Payable 26121 1779 Credit 620000 36123 27900 27900
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