On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were issued for $590,744, and pay interest each July 1 and January 1. Pina uses the effective-interest method. 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. Assume an effective-interest rate of 10%. (Round answers to O 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 1. 1, 2025 1, 2025 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Interest Expense Discount on Bonds Payable Cash Debit 590744 39256 III 29537 Credit 630000 1187 28350

On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were issued for $590,744, and pay interest each July 1 and January 1. Pina uses the effective-interest method. 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. Assume an effective-interest rate of 10%. (Round answers to O 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 1. 1, 2025 1, 2025 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Interest Expense Discount on Bonds Payable Cash Debit 590744 39256 III 29537 Credit 630000 1187 28350

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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