On October 1, 2024, Indigo Corp. issued $960,000, 5 %, 10-year bonds at face value. The bonds were dated October 1, 2024, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Your Answer Correct Answer (Used) Prepare the journal entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Oct. 1. 2024 Account Titles and Explanation Cash Bonds Payable Debit 960,000 Credit 96
On October 1, 2024, Indigo Corp. issued $960,000, 5 %, 10-year bonds at face value. The bonds were dated October 1, 2024, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Your Answer Correct Answer (Used) Prepare the journal entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Date Oct. 1. 2024 Account Titles and Explanation Cash Bonds Payable Debit 960,000 Credit 96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11.
Subject :- Accounting
Transcribed Image Text:On October 1, 2024, Indigo Corp. issued $960,000, 5 %, 10-year bonds at face value. The bonds were dated October 1, 2024, and pay
interest annually on October 1. Financial statements are prepared annually on December 31.
(a)
Your Answer Correct Answer (Used)
Prepare the journal entry to record the issuance of the bonds. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter O for the amounts.)
Date
Oct. 1. 2024
Account Titles and Explanation
Cash
Bonds Payable
Debit
960,000
Credit
96
Transcribed Image Text:(b)
Prepare the adjusting entry to record the accrual of interest on December 31, 2024. (List all debit entries before credit entries. Credit
account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts)
Account Titles and Explanation
Date
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