On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit X/X b. Journalize the first annual interest payment on December 31, 20X1. DATE Debit Credit X/X c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE Debit Credit X/X
On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit X/X b. Journalize the first annual interest payment on December 31, 20X1. DATE Debit Credit X/X c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE Debit Credit X/X
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSA
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Question
On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond.
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b. Journalize the first annual interest payment on December 31, 20X1.
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X/X |
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c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.)
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X/X |
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d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction.
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Credit |
X/X |
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