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Sweet Corporation issued $470,000 of 7% bonds on November 1, 2020, for $499,520. The bonds were dated November 1, 2020, and mature in 8 years,
Sweet Corporation issued $470,000 of 7% bonds on November 1, 2020, for $499,520. The bonds were dated November 1, 2020, and mature in 8 years, with interest payable each May 1 and November 1. Sweet uses the effective interest method with an effective rate of 6%. Prepare Sweet's December 31, 2020, adjusting entry. (Round intermediate calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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