Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay interest each July 1 and January 1. Assume an effective-interest rate of 6%. Required: Prepare the company's journal entries for

Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay interest each July 1 and January 1. Assume an effective-interest rate of 6%. Required: Prepare the company's journal entries for

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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Question

Exercise 2:
On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds,
due in 10 years. The bonds were issued for $644,636, and pay
interest each July 1 and January 1. Assume an effective-interest rate
of 6%.
Required:
Prepare the company's journal entries for
1- The January 1 issuance.
2- The July 1 interest payment.
3- The Dec 31 adjusting entry.

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