Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing $ ? c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing $ ?
Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing $ ? c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing $ ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually.
a.) Prepare the
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Account Titles and Explanation
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Debit
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Credit
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b.) Compute the total cost of borrowing for these bonds.
| Total cost of borrowing |
$ ?
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c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
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d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101.
| Total cost of borrowing |
$ ?
|
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