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On July 1 , 2 0 Y 1 , Livingston Corporation, a wholesaler of manufacturing equipment, issued $ 4 6 , 0 0 0 ,
On July Y Livingston Corporation, a wholesaler of manufacturing equipment, issued $ of year, bonds at a market effective interest rate of receiving cash of $ Interest on the bonds is payable semiannually on December and June The fiscal year of the company is the calendar year.
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For all journal entries, if an amount box does not require an entry, leave it blank.
Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.
Y July Discount on Bonds Payable
Bonds Payable
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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
Journalize the entries to record the following:
a The first semiannual interest payment on December and the amortization of the bond discount, using the interest method. Round to the nearest dollar.
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Journalize the entries to record the following:
a The first semiannual interest payment on December and the amortization of the bond discount, using the interest method. Round to the nearest dollar.
Y Dec. Interest Expense
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a Cash received on July Y semiannual market rate Interest Expense debit Principal semiannual contract rate cash paid credit The premium amortized debit is the difference between the two amounts.
b The interest payment on June and the amortization of the bond discount, using the interest method. Round to the nearest dollar.
June
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b The interest payment on June and the amortization of the bond discount, using the interest method. Round to the nearest dollar.
Y June
ALGO
B
BGENERALLEDGER
EXCEL.ALGO
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Interest expense is the amount debited in a
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