On October 1, 2021, Sheffield Corporation issued $500,000 of 10-year, 5% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Sheffield’s year end is December 31 and the company records adjusting entries annually. (a) Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. The issue of the bonds on October 1, 2021. 2. The accrual of interest on December 31, 2021. 3.The payment of interest on April 1, 2022.
On October 1, 2021, Sheffield Corporation issued $500,000 of 10-year, 5% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Sheffield’s year end is December 31 and the company records adjusting entries annually. (a) Prepare journal entries to record the following: (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. The issue of the bonds on October 1, 2021. 2. The accrual of interest on December 31, 2021. 3.The payment of interest on April 1, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 1, 2021, Sheffield Corporation issued $500,000 of 10-year, 5% bonds at 100. Interest is payable semi-annually on October 1 and April 1. Sheffield’s year end is December 31 and the company records
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