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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

FINANCIAL ACCOUNTING
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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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: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
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 Attempts: 0 of 3 used Submit Amer eTextbook and Media List of Accounts Save for Later
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 Attempts: 0 of 3 used Submit Amer eTextbook and Media List of Accounts Save for Later
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