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 firs semiannual interest payment by selecting the account names from the drop-down menus and entering the associated dollar amounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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 firs semiannual interest payment by selecting the account names from the drop-down menus and entering the associated dollar amounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vishu
Transcribed Image Text:Knowledge Check of
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 first
semiannual interest payment by selecting the account names from the drop-down menus and entering the associated dollar
amounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account
field.)
Transcribed Image Text:Record the first semiannual interest payment for 5%, 11-year bonds with a
face value of $70,000.
Note: Enter debits before credits.
Date
June 30
General Journal
Debit
Credit
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