Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Ayayai Corp. (Credit account titles are automatically indented when the 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.) March 1 Issued $5,200,000 face value Ayayai Corp. second mortgage, 8% bonds for $5,669,040, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Ayayai Corp. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on Ayayai Corp. bonds and purchased $2,600,000 face value bonds at the call price in accordance with the provisions of the bond indenture.

Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Ayayai Corp. (Credit account titles are automatically indented when the 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.) March 1 Issued $5,200,000 face value Ayayai Corp. second mortgage, 8% bonds for $5,669,040, including accrued interest. Interest is payable semiannually on December 1 and June 1 with the bonds maturing 10 years from this past December 1. The bonds are callable at 102. June 1 Paid semiannual interest on Ayayai Corp. bonds. (Use straight-line amortization of any premium or discount.) December 1 Paid semiannual interest on Ayayai Corp. bonds and purchased $2,600,000 face value bonds at the call price in accordance with the provisions of the bond indenture.

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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