b. Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2022, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. Determine the amount of interest expense to record if financial statements are issued on October 31, 2022. c. On October 1, 2022, Chinook Company sold 12% bonds having a maturity value of $800,000 for $853,382 plus accrued interest, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2022, and mature January 1, 2027, with interest payable December 31 of each year. Prepare the journal entries at the date of the bond issuance and for the first interest payment.

b. Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2022, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. Determine the amount of interest expense to record if financial statements are issued on October 31, 2022. c. On October 1, 2022, Chinook Company sold 12% bonds having a maturity value of $800,000 for $853,382 plus accrued interest, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2022, and mature January 1, 2027, with interest payable December 31 of each year. Prepare the journal entries at the date of the bond issuance and for the first interest payment.

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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