Exercise 14-6 (Algo) Bonds; Issuance; effective Interest [LO14-2] The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). View transaction list 1 Record the issuance of the bond on June 30, 2021. 2 Record the interest on December 31, 2021 (at the effective rate). 3 Record the interest on June 30, 2022 (at the effective rate). Note : = journal entry has been entered Record entry Clear entry X Credit View general journal
Exercise 14-6 (Algo) Bonds; Issuance; effective Interest [LO14-2] The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). View transaction list 1 Record the issuance of the bond on June 30, 2021. 2 Record the interest on December 31, 2021 (at the effective rate). 3 Record the interest on June 30, 2022 (at the effective rate). Note : = journal entry has been entered Record entry Clear entry X Credit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hi, please help with attached questions, thanks so much.
![Exercise 14-6 (Algo) Bonds; Issuance; effective Interest [LO14-2]
The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on
June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31
and June 30.
Required:
1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021
and interest on June 30, 2022 (at the effective rate).
View transaction list
1 Record the issuance of the bond on June 30, 2021.
2 Record the interest on December 31, 2021 (at the
effective rate).
3 Record the interest on June 30, 2022 (at the effective
rate).
Note :
= journal entry has been entered
Record entry
Clear entry
EX
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F31101f85-6c54-4f03-8950-718f0fe3a850%2Fm6al19_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-6 (Algo) Bonds; Issuance; effective Interest [LO14-2]
The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated on June 30 and mature on
June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31
and June 30.
Required:
1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021
and interest on June 30, 2022 (at the effective rate).
View transaction list
1 Record the issuance of the bond on June 30, 2021.
2 Record the interest on December 31, 2021 (at the
effective rate).
3 Record the interest on June 30, 2022 (at the effective
rate).
Note :
= journal entry has been entered
Record entry
Clear entry
EX
Credit
View general journal
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