EXERCISE 21-3 On January 1, Murphy, Inc., issues 7 percent, 20-year bonds with aface value of $650,000 at 96. Interest is payable on June 30 and December 31. Journalizethe following entries:a. Issuance of the bondsb. Payment of semiannual interest on June 30 and December 31C. Adjusting entry to amortize the discount on December 31, the company's year end

Date Particular Debit ($) Credit ($) 1 January Cash 624000 Discount on bonds payable 26000…

EXERCISE 21-3 On January 1, Murphy, Inc., issues 7 percent, 20- face value of $650,000 at 96. Interest is payable on June 30 and Decem the following entries: a. Issuance of the bonds b. Payment of semiannual interest on June 30 and December 31

EXERCISE 21-3 On January 1, Murphy, Inc., issues 7 percent, 20- face value of $650,000 at 96. Interest is payable on June 30 and Decem the following entries: a. Issuance of the bonds b. Payment of semiannual interest on June 30 and December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

EXERCISE 21-3 On January 1, Murphy, Inc., issues 7 percent, 20-year bonds with a
face value of $650,000 at 96. Interest is payable on June 30 and December 31. Journalize
the following entries:
a. Issuance of the bonds
b. Payment of semiannual interest on June 30 and December 31
C. Adjusting entry to amortize the discount on December 31, the company's year end

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