Recording Bonds issued at a Discount-Effective Interest Tale Corporation issued $24,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1.Yale amortizes any bond discount or premium using the effective interest amortization method of the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates January 1, for nuance of bonds b. June 30, for the first interest payment. Note: Round your answer to the nearest whole dolar. Data *L 30 Tunandibesu Account Name Dr. C

Recording Bonds issued at a Discount-Effective Interest Tale Corporation issued $24,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1.Yale amortizes any bond discount or premium using the effective interest amortization method of the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates January 1, for nuance of bonds b. June 30, for the first interest payment. Note: Round your answer to the nearest whole dolar. Data *L 30 Tunandibesu Account Name Dr. C

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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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 straight-line 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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