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Windsor Company borrowed money by issuing $3,000,000 of 6% bonds payable at 102.9 on July 1, 2018. The bonds are five-year bonds and pay interest
Windsor Company borrowed money by issuing $3,000,000 of 6% bonds payable at 102.9 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Windsor receive when it issued the bonds payable? Journalize this transaction. Windsor received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jul 2. How much must Windsor pay back at maturity? When is the maturity date? At maturity, Windsor must pay back $ D . The maturity date is 3. How much cash interest will Windsor pay each six months? Windsor will pay interest of $ L e ach six months. 4. How much interest expense will Windsor report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2018, and payment of interest on January 1, 2019. Windsor will report $ of interest expense each six months. Journalize the entry for accrual of interest and amortization of discount on December 31, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Date Debit Credit Dec 31 Journalize the entry for the payment of interest on January 1, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jan
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