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Luther Company borrowed money by issuing $4,500,000 of 8% bonds payable at 101.2 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Luther receive when it issued the bonds payable? Journalize this transaction. Luther received $ 4500000 when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul 1 Cash Bonds Payable Journal Entry Accounts Premium on Bonds Payable Debit Credit 2. How much must Luther pay back at maturity? When is the maturity date? At maturity, Luther must pay back $ The maturity date is

Luther Company borrowed money by issuing $4,500,000 of 8% bonds payable at 101.2 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Luther receive when it issued the bonds payable? Journalize this transaction. Luther received $ 4500000 when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul 1 Cash Bonds Payable Journal Entry Accounts Premium on Bonds Payable Debit Credit 2. How much must Luther pay back at maturity? When is the maturity date? At maturity, Luther must pay back $ The maturity date is

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Luther Company borrowed money by issuing $4,500,000 of 8% bonds payable at 101.2 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Luther receive when it issued the bonds payable? Journalize this transaction. Luther received $ 4500000 when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul 1 Cash Bonds Payable Journal Entry Accounts Premium on Bonds Payable Debit Credit 2. How much must Luther pay back at maturity? When is the maturity date? At maturity, Luther must pay back $ The maturity date is
Transcribed Image Text:Luther Company borrowed money by issuing $4,500,000 of 8% bonds payable at 101.2 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Luther receive when it issued the bonds payable? Journalize this transaction. Luther received $ 4500000 when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul 1 Cash Bonds Payable Journal Entry Accounts Premium on Bonds Payable Debit Credit 2. How much must Luther pay back at maturity? When is the maturity date? At maturity, Luther must pay back $ The maturity date is
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