Question
On January 1, Windsor, Inc. issued $310,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal
On January 1, Windsor, Inc. issued $310,000, 7%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash Bonds Payable 310000 310000 (b) Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit (c) Prepare the journal entry to record the payment of interest on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1
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