Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200.000
Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
F3.
Transcribed Image Text:Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries.
Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,
select "No Entry for the account titles and enter 0 for the amounts.)
Date
Jan. 1, 2025
Date
Dec. 31.
2025
Account Titles and Explanation
Date
Cash
Jan. 1, 2026
Bonds Payable
(b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit
entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Interest Expense
Cash
Account Titles and Explanation
Debit
Interest Expense
2500,000
Interest Payable
Debit
(c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account
titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the amounts.)
200,000
Debit
Credit
2500,000
200,000
Credit
200,000
Credit
200,000
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