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Rickey Company borrowed money by issuing $1,500,000 of 6% bonds payable at 101.3 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. Rickey received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul Journal Entry Accounts Debit Credit 2. How much must Rickey pay back at maturity? When is the maturity date? Requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. 2. How much must Rickey pay back at maturity? When is the maturity date? 3. How much cash interest will Rickey pay each six months? - X

Rickey Company borrowed money by issuing $1,500,000 of 6% bonds payable at 101.3 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. Rickey received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul Journal Entry Accounts Debit Credit 2. How much must Rickey pay back at maturity? When is the maturity date? Requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. 2. How much must Rickey pay back at maturity? When is the maturity date? 3. How much cash interest will Rickey pay each six months? - X

FINANCIAL ACCOUNTING
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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Rickey Company borrowed money by issuing $1,500,000 of 6% bonds payable at 101.3 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. Rickey received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul Journal Entry Accounts Debit Credit Requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. 2. 2. How much must Rickey pay back at maturity? When is the maturity date? 3. How much must Rickey pay back at maturity? When is the maturity date? How much cash interest will Rickey pay each six months? At maturity, Rickey must pay back! 4. How much interest expense will Rickey report each six months? Use The maturity date is the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2018, and payment of interest on January 1, 2019. Print Done - X
Transcribed Image Text:Rickey Company borrowed money by issuing $1,500,000 of 6% bonds payable at 101.3 on July 1, 2018. The bonds are five-year bonds and pay interest each January 1 and July 1. Read the requirements. 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. Rickey received $ when the bonds payable were issued. Journalize the issuance of the bonds payable. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Jul Journal Entry Accounts Debit Credit Requirements 1. How much cash did Rickey receive when it issued the bonds payable? Journalize this transaction. 2. 2. How much must Rickey pay back at maturity? When is the maturity date? 3. How much must Rickey pay back at maturity? When is the maturity date? How much cash interest will Rickey pay each six months? At maturity, Rickey must pay back! 4. How much interest expense will Rickey report each six months? Use The maturity date is the straight-line amortization method. Journalize the entries for the accrual of interest and the amortization of premium on December 31, 2018, and payment of interest on January 1, 2019. Print Done - X
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