Fireside, Inc. had the following bond issue: Date of issue/sale May 1, 20-A Principal amount: $400,000 Sale price of bonds: 96 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a.  The issuance of the bonds on May 1, 20-A. b.  The first interest payment for 20-A. c.  The adjusting entry for December 31, 20-A. d.  The reversing entry for January 1, 20-B. If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fireside, Inc. had the following bond issue:

Date of issue/sale May 1, 20-A
Principal amount: $400,000
Sale price of bonds: 96
Life of bonds: 10 years
Stated rate: 6% a year payable semiannually on October 31 and April 30

Required:

Prepare the following general journal entries.

a.  The issuance of the bonds on May 1, 20-A.

b.  The first interest payment for 20-A.

c.  The adjusting entry for December 31, 20-A.

d.  The reversing entry for January 1, 20-B.

If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar.

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