On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for $914,443, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Riverbed Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1 2020 914443
On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for $914,443, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Riverbed Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Your answer is correct. Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1 2020 914443
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2020, Riverbed Company sold 12% bonds having a maturity value of $850,000 for $914,443, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31
of each year, Riverbed Company allocates interest and unamortized discount or premium on the effective-interest basis.
(a)
Your answer is correct.
Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Credit
Debit
January 1
2020
914443
Transcribed Image Text:Prepare the journal entry to record the interest payment and the amortization for 2020 (Round onomer to 0 decimal places
eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts Credit account
titles are automatically indented when amount is entered. Do not indent manually)
Date
Account Titles and Explanation
Debit
Credit
December
31, 2020
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