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est rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100.000 that pay interest annually on December 31. Bonita Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Coronado Corp. sold its bonds at 93 and offered a coupon interest rate of 4%, and Sunland Inc. sold its bonds at 105 and offered a 8% coupon interest rate. Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

est rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100.000 that pay interest annually on December 31. Bonita Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Coronado Corp. sold its bonds at 93 and offered a coupon interest rate of 4%, and Sunland Inc. sold its bonds at 105 and offered a 8% coupon interest rate. Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to O decimal places, eg. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

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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Ef 439.

When market interest rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100,000 that pay interest annually on December 31. Bonita Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Coronado Corp. sold its bonds at 93 and offered a coupon interest rate of 4%, and Sunland Inc. sold its bonds at 105 and offered a 8% coupon interest rate. Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Bonita Limited Dec. 31 Coronado Corp. Dec. 31 Sunland Inc. Dec. 31 Account Titles and Explanation Interest Expense Cash Interest Expense Bonds Payable Cash Bonds Payable Cash Debit 6.000 5580 6300 1140 Credit 6.000 1580 4000 7440
Transcribed Image Text:When market interest rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100,000 that pay interest annually on December 31. Bonita Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Coronado Corp. sold its bonds at 93 and offered a coupon interest rate of 4%, and Sunland Inc. sold its bonds at 105 and offered a 8% coupon interest rate. Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Bonita Limited Dec. 31 Coronado Corp. Dec. 31 Sunland Inc. Dec. 31 Account Titles and Explanation Interest Expense Cash Interest Expense Bonds Payable Cash Bonds Payable Cash Debit 6.000 5580 6300 1140 Credit 6.000 1580 4000 7440
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