On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The bonds had a stated rate of 8% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank.
On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The bonds had a stated rate of 8% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The bonds had a stated rate of 8% and paid interest semi-annually.
What is the
Jan. 1 | |||
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Step 1
Bonds are issued to fulfil the requirement of the capital of the company. It represents the liability of the company on which a fixed percentage of interest would require to be given.
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