Required information [The following information applies to the questions displayed below.] Legacy issues $590,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $542,310 when the market rate is 10%. 4. Prepare the journal entries to record the first two interest payments. View transaction list
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
h
![Required information
[The following information applies to the questions displayed below.]
Legacy issues $590,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and
December 31. They are issued at $542,310 when the market rate is 10%.
4. Prepare the journal entries to record the first two interest payments.
View transaction list
Journal entry worksheet
2
<
Record the interest payment and amortization on June 30.
Note: Enter debits before credits.
Date
June 30
Record entry
1
Journal entry worksheet
<
2
General Journal
Date
December 31
Clear entry
Note: Enter debits before credits.
Record entry
Debit
Record the interest payment and amortization on December 31.
General Journal
Clear entry
Credit
View general journal
>
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7ae8884-4294-4483-9dd3-3d65e6fd2736%2Fad917d37-ae88-4003-b947-f2598e0a3d59%2F40w555_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
