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Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 (c)

Prepare the journal entry to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 (c)

FINANCIAL ACCOUNTING
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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### Journal Entry Preparation #### (b) Accrual of Interest on December 31 Prepare the journal entry to record the accrual of interest on December 31. (Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | |----------|--------------------------------|-------|--------| | Dec. 31 | | | | | | | | | #### (c) Payment of Interest on January 1 Prepare the journal entry to record the payment of interest on January 1. (Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | |---------|--------------------------------|-------|--------| | Jan. 1 | | | | | | | | |
Transcribed Image Text:### Journal Entry Preparation #### (b) Accrual of Interest on December 31 Prepare the journal entry to record the accrual of interest on December 31. (Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | |----------|--------------------------------|-------|--------| | Dec. 31 | | | | | | | | | #### (c) Payment of Interest on January 1 Prepare the journal entry to record the payment of interest on January 1. (Note: Credit account titles are automatically indented when the amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | |---------|--------------------------------|-------|--------| | Jan. 1 | | | | | | | | |
**Bond Issuance Journal Entry** On January 1, Skysong, Inc. issued $290,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. **(a) Journal Entry Preparation** Prepare the journal entry to record the issuance of the bonds. **(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)** | Date | Account Titles and Explanation | Debit | Credit | |--------|--------------------------------|--------|--------| | Jan. 1 | | | | | | | | | **Instructions for Journal Entry:** - When entering account titles, ensure that credit accounts are indented automatically as required. - This example showcases a basic journal entry template necessary for recording the issuance of bonds at face value.
Transcribed Image Text:**Bond Issuance Journal Entry** On January 1, Skysong, Inc. issued $290,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. **(a) Journal Entry Preparation** Prepare the journal entry to record the issuance of the bonds. **(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)** | Date | Account Titles and Explanation | Debit | Credit | |--------|--------------------------------|--------|--------| | Jan. 1 | | | | | | | | | **Instructions for Journal Entry:** - When entering account titles, ensure that credit accounts are indented automatically as required. - This example showcases a basic journal entry template necessary for recording the issuance of bonds at face value.
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