Garcia Company issues 11.0%, 15-year bonds with a par value of $440,00o0 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.0%, which implies a selling price of 114. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $440,000 at a selling price of 114. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Garcia Company issues 11.0%, 15-year bonds with a par value of $440,00o0 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 9.0%, which implies a selling price of 114.
Prepare the journal entry for the issuance of these bonds for cash on January 1.
View transaction list
Journal entry worksheet
1
Record the issue of bonds with a par value of $440,000 at a selling price of
114.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Jan 01
Record entry
Clear entry
View general journal
Transcribed Image Text:Garcia Company issues 11.0%, 15-year bonds with a par value of $440,00o0 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.0%, which implies a selling price of 114. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $440,000 at a selling price of 114. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal
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