Prepare the journal entries to record the following transactions. (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. Round answers to O decimal places, eg. 125) 1 2. 3 4. The issuance of the bonds on January 1, 2025. Accrual of interest and amortization of the premium on December 31, 2025, The payment of interest on January 1, 2026. Accrual of interest and amortization of the premium on December 31, 2026.
Prepare the journal entries to record the following transactions. (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. Round answers to O decimal places, eg. 125) 1 2. 3 4. The issuance of the bonds on January 1, 2025. Accrual of interest and amortization of the premium on December 31, 2025, The payment of interest on January 1, 2026. Accrual of interest and amortization of the premium on December 31, 2026.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2025, Flint Company issued $3,000,000 face value, 7% , 10-year bonds at $3,220,803. This price resulted in a 6%
effective-interest rate on the bonds. Flint uses the effective-interest method to amortize bond premium or discount. The bonds pay
annual interest on each January 1.
(a)
Prepare the journal entries to record the following transactions. (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. Round answers to O decimal places, e.g. 125)
1
2.
3.
4.
No
The issuance of the bonds on January 1, 2025,
Accrual of interest and amortization of the premium on December 31, 2025,
The payment of interest on January 1, 2026.
Accrual of interest and amortization of the premium on December 31, 2026.
Date
Account Titles and Explanation.
Debit
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