On August 1, 2022, Blue Spruce Corp. issued $481,200, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Blue Spruce’s year-end is December 31. (a)     Prepare the journal entry to record the issuance of the bonds.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On August 1, 2022, Blue Spruce Corp. issued $481,200, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Blue Spruce’s year-end is December 31.

(a)

 
 
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Aug. 1
enter an account title to record the issuance of the bonds on August 1enter an account title to record the issuance of the bonds on August 1
enter a debit amountenter a debit amount
enter a credit amountenter a credit amount
 
enter an account title to record the issuance of the bonds on August 1enter an account title to record the issuance of the bonds on August 1
enter a debit amountenter a debit amount
enter a credit amountenter a credit amount
 
 
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