Prepare the journal entry to record the interest payment on June 30 of this year. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your termediate calculations and final answers to whole dollars. No Denzel Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and does not use a discount account. Assume an annual market rate of interest of 8.5 percent. (EV of $1. PV of $1. EVA of $1. and PVA of $1) Note: Use appropriate factor(s) from the tables provided. 1 Date June 30 Interest expense Bonds payable Cash Answer is not complete. General Journal Debit 27,228 2,397 Credit 29,625
Prepare the journal entry to record the interest payment on June 30 of this year. ote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your termediate calculations and final answers to whole dollars. No Denzel Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and does not use a discount account. Assume an annual market rate of interest of 8.5 percent. (EV of $1. PV of $1. EVA of $1. and PVA of $1) Note: Use appropriate factor(s) from the tables provided. 1 Date June 30 Interest expense Bonds payable Cash Answer is not complete. General Journal Debit 27,228 2,397 Credit 29,625
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Denzel Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds
mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1
of this year. Denzel uses the effective-interest amortization method and does not use a discount account. Assume an
annual market rate of interest of 8.5 percent. (EV of $1. PV of $1. EVA of $1. and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
2. Prepare the journal entry to record the interest payment on June 30 of this year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your
intermediate calculations and final answers to whole dollars.
No
Date
June 30
Interest expense
Bonds payable
Cash
Answer is not complete.
General Journal
Debit
27,228
2,397
Credit
29,625
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