On AUG 01, 2022, Corp issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on AUG 01. Corp's year-end is DEC 31. Interest is still expressed as an ANNUAL rate, 7% per year. Pay attention to the number of months applicable when computing the adjustment. (FYI: count months on your fingers). Instructions Prepare journal entries to record the following events. a) The issuance of the bonds. b) The annual accrual of interest on December 31, 2022. c) The payment of interest on August 1, 2023. Aug 01 2022 Dec 31 2022 Aug 01 2023

On AUG 01, 2022, Corp issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on AUG 01. Corp's year-end is DEC 31. Interest is still expressed as an ANNUAL rate, 7% per year. Pay attention to the number of months applicable when computing the adjustment. (FYI: count months on your fingers). Instructions Prepare journal entries to record the following events. a) The issuance of the bonds. b) The annual accrual of interest on December 31, 2022. c) The payment of interest on August 1, 2023. Aug 01 2022 Dec 31 2022 Aug 01 2023

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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