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.
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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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F219064fc-be0d-4a8b-a28d-bcaa5ec97039%2F5f6da061-1554-47a2-a391-05513f59170d%2Fyac6gjc.png&w=3840&q=75)
Transcribed Image Text: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.
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