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Carla Vista Company issued $790,000, 9%, 10-year bonds on December 31, 2021, for $720,000. Interest is payable annually on December 31. Carla Vista Company uses the straight-line method to amortize bond premium or discount.

Carla Vista Company issued $790,000, 9%, 10-year bonds on December 31, 2021, for $720,000. Interest is payable annually on December 31. Carla Vista Company uses the straight-line method to amortize bond premium or discount.

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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Carla Vista Company issued $790,000, 9%, 10-year bonds on December 31, 2021, for $720,000. Interest is payable annually on December 31. Carla Vista Company uses the straight-line method to amortize bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2021 Debit Credit
Transcribed Image Text:Carla Vista Company issued $790,000, 9%, 10-year bonds on December 31, 2021, for $720,000. Interest is payable annually on December 31. Carla Vista Company uses the straight-line method to amortize bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2021 Debit Credit
(c) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2031 eTextbook and Media List of Accounts Save for Later Debit Attempts: 0 of 1 used Credit Submit Answer
Transcribed Image Text:(c) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31, 2031 eTextbook and Media List of Accounts Save for Later Debit Attempts: 0 of 1 used Credit Submit Answer
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