Answered step by step
Verified Expert Solution
Question
1 Approved Answer
why the answers are incorrcet and why discount on bonds payable is not correct? On January 1, 2022, Bridgeport Corporation issued $670,000 of 9% bonds,
why the answers are incorrcet and why discount on bonds payable is not correct?
On January 1, 2022, Bridgeport Corporation issued $670,000 of 9% bonds, due in 10 years. The bonds were issued for $628,252, and pay interest each July 1 and January 1. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%. (Round 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.) Discount on Bonds Payable Cash Interest Expense .31,2022v Interest PayableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started