On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a yield of 12%. Nash uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. nt interest and the amortization No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020
On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a yield of 12%. Nash uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. nt interest and the amortization No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a yield of 12%. Nash uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
**Prepare the journal entries to record the following transactions.** *(Round answer to 0 decimal places, e.g., 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)*
1. The issuance of the bonds on June 30, 2020.
| No. | Date | Account Titles and Explanation | Debit | Credit |
|-----|--------------|--------------------------------|-------|--------|
| (1) | June 30, 2020 | | | |
*Note: Parts of the image are obscured and therefore, additional details about subsequent transactions or specific account titles and amounts are not available.*
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