Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yaleamortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were soldto yield 9%, provide journal entries to be made at each of the following dates.a. January 1, for issuance of bonds.b. June 30, for the first interest payment.• Note: Round your answers to the nearest whole dollar.Datea. Jan. 1Account NameCashDiscount on Bonds PayableBonds PayableTo record bond issuance.b. June 30 Interest ExpenseCashDiscount on Bonds PayableTo record interest payment.> > >Dr.54,5975,40302,45700Cr.0✔0x60,000✔0x2,400 ✓57 x

A Bond is a fixed-income investment that represents a loan made by an investor to a borrower,…

mortizes any bond discount or premium using the effective o yield 9%, provide journal entries to be made at each of the January 1, for issuance of bonds. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar.

mortizes any bond discount or premium using the effective o yield 9%, provide journal entries to be made at each of the January 1, for issuance of bonds. June 30, for the first interest payment. Note: Round your answers to the nearest whole dollar.

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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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale
amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold
to yield 9%, provide journal entries to be made at each of the following dates.
a. January 1, for issuance of bonds.
b. June 30, for the first interest payment.
• Note: Round your answers to the nearest whole dollar.
Date
a. Jan. 1
Account Name
Cash
Discount on Bonds Payable
Bonds Payable
To record bond issuance.
b. June 30 Interest Expense
Cash
Discount on Bonds Payable
To record interest payment.
> > >
Dr.
54,597
5,403
0
2,457
0
0
Cr.
0✔
0x
60,000✔
0x
2,400 ✓
57 x

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