Patricia Johnson Company issued $420,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually onJuly 1 and January 1. Johnson Company uses the straight-line method of amortization for bond premium or discount.Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter o for theamounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries beforecredit entries.)a.b.сThe issuance of the bonds.The payment of interest and the related amortization on July 1, 2025.The accrual of interest and the related amortization on December 31, 2025.DateAccount Titles and ExplanationDebit1000Credit

Name: Patricia Johnson Company issued $420,000 of 10%, 20-year bonds on Jan
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Description: Patricia Johnson Company issued $420,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually onJuly 1 and January 1. Johnson Company uses the straight-line method of amortization for bond premium or discount.Prepare th

Proceeds from issue of bonds = Face value of bonds x issue price /100= $420,000*102/100= $428,400

Answered: Patricia Johnson Company issued $420,00

Business

Accounting

Patricia Johnson Company issued $420,00

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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