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On January 1, Borgstrom Company issued $234,000,7%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Prepare journal entries
On January 1, Borgstrom Company issued $234,000,7%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) | The issuance of the bonds. | |
(b) | The payment of interest on July 1, assuming that interest was not accrued on June 30. | |
(c) | The accrual of interest on December 31. |
Date | Account Titles and Explanation | Debit | Credit |
Jan. 1 | | | |
| | ||
July 1 | | | |
| | ||
Dec. 31 | | | |
| |
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