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Presented below are selected transactions on the books of Coronado Corporation. June 1, 2020 Bonds payable with a par value of $564,000, which are dated
Presented below are selected transactions on the books of Coronado Corporation.
June 1, 2020 | Bonds payable with a par value of $564,000, which are dated January 1, 2017, are sold at 99 plus accrued interest. They are coupon bonds, bear interest at 9% (payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) | |
Dec. 31 | Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of discount. (Use straight-line amortization.) | |
Jan. 1, 2021 | Interest on the bonds is paid. | |
August 1 | Bonds with par value of $225,600 are called at 102 plus accrued interest, and retired. (Bond discount is to be amortized only at the end of each year.) | |
Dec. 31 | Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of discount amortized. |
Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit > > >
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