Knowledge Check 01 On January 1, Year 1, McClurg Corporation issues 5%, 11-year bonds with a face amount of $70,000 for $76,180 The market interest rate is 4% Interest is paid semiannually on June 30 and December 31 Complete the necessary journal entry for the issuance of the bonds by selecting the account names from the drop-down menus and entering the associated dollar amounts of no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction let Journal entry worksheet 1 Record the issuance of 5%, 11-year bonds with a face value of $70,000 for $76,190 Date General Journal Debit Credit

Knowledge Check 01 On January 1, Year 1, McClurg Corporation issues 5%, 11-year bonds with a face amount of $70,000 for $76,180 The market interest rate is 4% Interest is paid semiannually on June 30 and December 31 Complete the necessary journal entry for the issuance of the bonds by selecting the account names from the drop-down menus and entering the associated dollar amounts of no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction let Journal entry worksheet 1 Record the issuance of 5%, 11-year bonds with a face value of $70,000 for $76,190 Date General Journal Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Knowledge Check 01 On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds have a stated interest rate of 8% and pay interest once per year on December 31. Prepare the appropriate journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) - View transaction list View journal entry worksheet No 1 Transaction A Gain on Bond Retirement Interest Expense General Journal Debit 104,000 Credit 8,000 Ⓒ