Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual...
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Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual basis every January 1 and July 1. Prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 5% and has a year-end of December 31, 2024. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Date January 1 Cash Bonds Payable July 1 Interest Expense Bonds Payable Cash December 31 Interest Expense Interest Payable Bonds Payable eTextbook and Media List of Accounts Debit 156,564 3914 Credit 156,564 Sunland Inc. issued $150,000, 5-year bond on January 1, 2024 paying 6% interest on a semi-annual basis every January 1 and July 1. Prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 5% and has a year-end of December 31, 2024. (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.) Account Titles and Explanation Date January 1 Cash Bonds Payable July 1 Interest Expense Bonds Payable Cash December 31 Interest Expense Interest Payable Bonds Payable eTextbook and Media List of Accounts Debit 156,564 3914 Credit 156,564
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Bond Issuance on January 1 2024 Bond principal issued 150000 Effective Interest Rate Calculation Cas... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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