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bookkeeper was not very good. The CPA prepared a bank reconciliation and discovered that the bookkeeper neglected to record the bond issued on January 1 of this year and neglected the recording of the interest payment on June 30. Since Byte does not make entries into "closed" periods, record the entries as of December 31. 34- December 31: On January 1, Byte received $182,646.30 when they issued a $170,000.00, 7%, ten-year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. 35 - December 31: Check # 5367 was issued on June 30 for the timely interest payment for the bond. Record the entry using the effective - interest method. This entry was never recorded. 36 December 31: Check # 6011 was issued on December 31st for the timely interest payment for the bond. Record the entry using the effectiv - interest method.

bookkeeper was not very good. The CPA prepared a bank reconciliation and discovered that the bookkeeper neglected to record the bond issued on January 1 of this year and neglected the recording of the interest payment on June 30. Since Byte does not make entries into "closed" periods, record the entries as of December 31. 34- December 31: On January 1, Byte received $182,646.30 when they issued a $170,000.00, 7%, ten-year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. 35 - December 31: Check # 5367 was issued on June 30 for the timely interest payment for the bond. Record the entry using the effective - interest method. This entry was never recorded. 36 December 31: Check # 6011 was issued on December 31st for the timely interest payment for the bond. Record the entry using the effectiv - interest method.

FINANCIAL ACCOUNTING
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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Need journal entry for transaction 36: Christian Wolff, Byte's CPA, indicated that the previous bookkeeper was not very good. The CPA prepared a bank reconciliation and discovered that the bookkeeper neglected to record the bond issued on January 1 of this year and neglected the recording of the interest payment on June 30. Since Byte does not make entries into "closed" periods, record the entries as of December 31. 34 - December 31: On January 1, Byte received $182,646.30 when they issued a $170,000.00, 7%, ten - year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. 35 - December 31: Check # 5367 was issued on June 30 for the timely interest payment for the bond. Record the entry using the effective - interest method. This entry was never recorded. 36- December 31: Check # 6011 was issued on December 31st for the timely interest payment for the bond. Record the entry using the effectiv - interest method.
Transcribed Image Text:Need journal entry for transaction 36: Christian Wolff, Byte's CPA, indicated that the previous bookkeeper was not very good. The CPA prepared a bank reconciliation and discovered that the bookkeeper neglected to record the bond issued on January 1 of this year and neglected the recording of the interest payment on June 30. Since Byte does not make entries into "closed" periods, record the entries as of December 31. 34 - December 31: On January 1, Byte received $182,646.30 when they issued a $170,000.00, 7%, ten - year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. 35 - December 31: Check # 5367 was issued on June 30 for the timely interest payment for the bond. Record the entry using the effective - interest method. This entry was never recorded. 36- December 31: Check # 6011 was issued on December 31st for the timely interest payment for the bond. Record the entry using the effectiv - interest method.
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