Class Exercise Summer 2019 On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of $500,000. The Bonds were issued at a sale price of 97. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 1. 6%. Required: a. Journalize the issuance of the bonds on January 1, 2018. b. Journalize the interest payment of July 1, 2018 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2018 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2019. Submit your journal to instructor

Class Exercise Summer 2019 On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of $500,000. The Bonds were issued at a sale price of 97. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 1. 6%. Required: a. Journalize the issuance of the bonds on January 1, 2018. b. Journalize the interest payment of July 1, 2018 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2018 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2019. Submit your journal to instructor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Assuming the market interest rate on the issue date is 9%, the bonds will issue at $367,422. Exercise 9-8A Part 2 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)
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Subject : Accounting
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