On January 1. 2017 JWS Corporation issued $600,000 7% Bonds due in 10 years The bonds were issued for $599,224, and payinterest each July 1. and January 1 JWS uses the effective interest method Assume an effective rate of interest of 8%Prepare the company's journal entries for the July 1 Inerest paymentO nterest ExpenseInterest PayableDiscount on Bonds PayableOnterest PayableCash$21.000$1.369$22.369$21 000$1 369Discount on Bonds PayableO Merest ExpenseCashDiscount on Bones Payable$21000Interest ExpenseCashDiscount on Bonds Payable$1.369$22.369$21.000$1.369

Given information is: Face value of bonds = $600,000 Interest rate = 7% Period = 10 years

On January 1. 2017 JWS Corporation issued $600,000 7% Bonds due in 10 years The bonds were issued for $599.224, and pay interest each July 1. and January 1 JWS uses the effective-interest method Assume an effective rate of interest of 8% Prepare the company's journal entries for the July 1 Inerest payment $22.369 O nterest Expense Interest Payable Discount on Bonds Payable $21.000 $1.369 O nterest Payable Cash $22.369 $21000 S1.369 $21.000 Discount on Bonds Payable O merest Expense Cash Discount on Bonds Payable Interest Expense Cash Discount on Bends Payable $1.369 $22 369 $21.000 $1.369

On January 1. 2017 JWS Corporation issued $600,000 7% Bonds due in 10 years The bonds were issued for $599.224, and pay interest each July 1. and January 1 JWS uses the effective-interest method Assume an effective rate of interest of 8% Prepare the company's journal entries for the July 1 Inerest payment $22.369 O nterest Expense Interest Payable Discount on Bonds Payable $21.000 $1.369 O nterest Payable Cash $22.369 $21000 S1.369 $21.000 Discount on Bonds Payable O merest Expense Cash Discount on Bonds Payable Interest Expense Cash Discount on Bends Payable $1.369 $22 369 $21.000 $1.369

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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