On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at $2,099,023. This price resulted in an effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Sheridan has a calendar year end. (a) Your answer is correct. Prepare the journal entry to record the issue of the bonds on January 1, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Jan. 1, 2022 Cash Bonds Payable Debit 2099023 Credit 2099023
On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at $2,099,023. This price resulted in an effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Sheridan has a calendar year end. (a) Your answer is correct. Prepare the journal entry to record the issue of the bonds on January 1, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Jan. 1, 2022 Cash Bonds Payable Debit 2099023 Credit 2099023
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2022, Sheridan Corporation issued $2,250,000 face value, 7%, 10-year bonds at $2,099,023. This price resulted in an
effective-interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Sheridan has a calendar year end.
(a)
Your answer is correct.
Prepare the journal entry to record the issue of the bonds on January 1, 2022. (List all debit entries before credit entries. Credit
account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation
Jan. 1,
2022
Cash
Bonds Payable
Debit
2099023
Credit
2099023
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