Answered: PB6. 13.3 Edward Inc. issued bonds with…

PB6. 13.3 Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized

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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Question

GENERAL JOURNAL
PAGE
POST.
DATE
DESCRIPTION
REF.
DEBIT
CREDIT
1
20--
1
2 Jul.
2
3
4
4
5
15
6 Dec.
31
6
7
8
8
9
9
10
10
11 Dec.
31
11
12
12
13
13
14
14

PB6. 13.3 Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term
on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized
using the straightline method. Prepare journal entries for the following transactions.
A. July 1, 2018: entry to record issuing the bonds
B. Dec. 31, 2018: entry to record payment of interest to bondholders
C. Dec. 31, 2018: entry to record amortization of discount

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