On January 1, 2025, Whispering Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were issued for $503,306, and pay interest each July 1 and January 1. Whispering 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 8%. (Round answers 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation No. (a) (b) (c) Date Debit DONDOOO Cre
On January 1, 2025, Whispering Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were issued for $503,306, and pay interest each July 1 and January 1. Whispering 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 8%. (Round answers 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation No. (a) (b) (c) Date Debit DONDOOO Cre
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On January 1, 2025, Whispering Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were issued for $503,306, and
pay interest each July 1 and January 1. Whispering 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 8%. (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.)
Account Titles and Explanation
No.
(a)
(b)
(c)
Date
Debit
¯¯¯¯
Crec
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