7) On January 1, 2021, a company issues $800,000 of 6% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $800,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. Your answer will show: January 1, 2021 Dr. Cr. June 30, 2021 Dr. Cr. December 31, 2021 Dr. Cr.

7) On January 1, 2021, a company issues $800,000 of 6% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $800,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. Your answer will show: January 1, 2021 Dr. Cr. June 30, 2021 Dr. Cr. December 31, 2021 Dr. Cr.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...

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