On January 1, 2020, Martinez Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Martinez uses the effective-interest method. ( No. Date Account Titles and Explanation Debit Credit (a)                                                            Jan. 1, 2020July 1, 2020Dec. 31, 2020                           (b)                                                            Jan. 1, 2020July 1, 2020Dec. 31, 2020                           (c)                                                            Jan. 1, 2020July 1, 2020Dec. 31, 2020

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Martinez Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest each July 1 and January 1. The effective-interest rate is 8%.

Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Martinez uses the effective-interest method. (

No.
Date
Account Titles and Explanation
Debit
Credit
(a)
                                                           Jan. 1, 2020July 1, 2020Dec. 31, 2020
 
 
 
   
 
 
 
   
 
 
 
(b)
                                                           Jan. 1, 2020July 1, 2020Dec. 31, 2020
 
 
 
   
 
 
 
   
 
 
 
(c)
                                                           Jan. 1, 2020July 1, 2020Dec. 31, 2020
 
 
 
   
 
 
 
   
 
 
 
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