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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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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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