Frankum Company has issued three diff erent bonds during 2020. Interest is payable annually on each of these bonds. 1. On January 1, 2020, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2020, were issued at face value. 2. On July 1, $900,000, 9%, 5-year bonds dated July 1, 2020, were issued at 102. 3. On September 1, $400,000, 7%, 5-year bonds dated September 1, 2020, were issued at 98. Prepare the journal entry to record each bond transaction at the date of issuance.
Frankum Company has issued three diff erent bonds during 2020. Interest is payable annually on each of these bonds. 1. On January 1, 2020, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2020, were issued at face value. 2. On July 1, $900,000, 9%, 5-year bonds dated July 1, 2020, were issued at 102. 3. On September 1, $400,000, 7%, 5-year bonds dated September 1, 2020, were issued at 98. Prepare the journal entry to record each bond transaction at the date of issuance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3.
Frankum Company has issued three diff erent bonds during 2020. Interest is payable annually on each of these bonds.
1. On January 1, 2020, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2020, were issued at face value.
2. On July 1, $900,000, 9%, 5-year bonds dated July 1, 2020, were issued at 102.
3. On September 1, $400,000, 7%, 5-year bonds dated September 1, 2020, were issued at 98.
Prepare the
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