On January 1, Concord Corporation issued $280,000, 6%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 280000 280000 Bonds Payable (b) Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Date Account Titles and Explanation Dec. 31 Interest Expense Interest Payable
On January 1, Concord Corporation issued $280,000, 6%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 280000 280000 Bonds Payable (b) Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Date Account Titles and Explanation Dec. 31 Interest Expense Interest Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Interest Payable
(c)
Prepare the journal entry to record the payment of interest on January 1. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1
Interest Payable
Cash
List of Accounts
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Transcribed Image Text:On January 1, Concord Corporation issued $280,000, 6%, 10-year bonds at face value. Interest is payable annually on January 1.
(a)
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered.
Do not indent manually.)
e 5
Date Account Titles and Explanation
Debit
Credit
Jan. 1
Cash
280000
280000
Bonds Payable
(b)
Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Credit
Debit
Date Account Titles and Explanation
Dec. 31
Interest Expense
Interest Payable
888
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