Current Attempt in Progress On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $ 500,000 for $ 518,953, which provides the bondholders with a 10% yield. The bonds are dated January 1. 2020, and mature January 1, 2025, with interest payable December 31 of each year. Teal Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to O decimal places, eg. 38,548. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.16MCE
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On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $ 500,000 for $ 518,953, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31
of each year. Teal Company allocates interest and unamortized discount or premium on the effective-interest basis.
(a)
Prepare the journal entry at the date of the bond issuance. (Round answer to O decimal places, e.g. 38,548. If no entry is required,
select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
January 1,
2020
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Transcribed Image Text:View Policies Current Attempt in Progress On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $ 500,000 for $ 518,953, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Teal Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2020 eTextbook and Media Save for Later Attempts: unlimited Submit Answer
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