n July 31, 2021, Sheridan Inc. issued $430,000 of 5-year, 4% bonds at 104. Interest is payable semi-annually on July 31 and January 31. Sheridan’s fiscal year end is January 31. Is the market rate of interest higher or lower than 4%? The market rate of interest is select an o
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The market rate of interest is select an option
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Record the issue of the bonds on July 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|---|
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July 31
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enter an account title to record issuance of bonds
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enter a debit amount
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enter a credit amount
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enter an account title to record issuance of bonds
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enter a debit amount
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enter a credit amount
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|
| (To record issuance of bonds.) |
Record the payment of interest on January 31, 2022, assuming the semi-annual amortization amount for this interest period is $794. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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|---|---|---|---|
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Jan. 31
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enter an account title to record interest payment on January 31
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enter a debit amount
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enter a credit amount
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enter an account title to record interest payment on January 31
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enter a debit amount
|
enter a credit amount
|
|
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enter an account title to record interest payment on January 31
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enter a debit amount | enter a credit amount | |
| (To record interest payment.) |
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