Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. roblem 9-5A (Algo) Part 2 If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2024, and the first two emiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, elect "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Required information Problem 9-5A (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. roblem 9-5A (Algo) Part 2 If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2024, and the first two emiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, elect "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![Required information
Problem 9-5A (Algo) Record bond issue and related interest (LO9-5)
[The following information applies to the questions displayed below.]
On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7%
bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-5A (Algo) Part 2
2. If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2024, and the first two
semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
View transaction list View journal entry worksheet
No
1
Date
January 01, 2024 Cash
Bonds Payable
General Journal
Premium on Bonds Payable
2
June 30, 2024
Interest Expense
Debit
503,306
Credit
450,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82a55757-d2b3-426e-a054-70e5fa89af6d%2Fed419f95-c6e1-4fc4-afb0-423da37d6cfd%2F9vy8l78_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 9-5A (Algo) Record bond issue and related interest (LO9-5)
[The following information applies to the questions displayed below.]
On January 1, 2024, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7%
bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.
Problem 9-5A (Algo) Part 2
2. If the market interest rate is 8%, the bonds will issue at $503,306. Record the bond issue on January 1, 2024, and the first two
semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.)
View transaction list View journal entry worksheet
No
1
Date
January 01, 2024 Cash
Bonds Payable
General Journal
Premium on Bonds Payable
2
June 30, 2024
Interest Expense
Debit
503,306
Credit
450,000
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