Riverbed Ltd., a private company following ASPE, issued a $150,000, 3-year, zero-interest bond dated January 1, 2023. The market interest rate for similar bonds was 10%. Assume the company used the straight-line method of amortization. Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2023. (List all debit entries before credit entries. 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. Round answers to O decimal places, e.g. 5,275.) Date January 1, 2023 December 31, 2023 Account Titles Cash Bonds Payable Interest Expense Bonds Payable eTextbook and Media. Debit Credit
Riverbed Ltd., a private company following ASPE, issued a $150,000, 3-year, zero-interest bond dated January 1, 2023. The market interest rate for similar bonds was 10%. Assume the company used the straight-line method of amortization. Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2023. (List all debit entries before credit entries. 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. Round answers to O decimal places, e.g. 5,275.) Date January 1, 2023 December 31, 2023 Account Titles Cash Bonds Payable Interest Expense Bonds Payable eTextbook and Media. Debit Credit
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
24.
Subject : - Finance
Please answer all parts.
Transcribed Image Text:Riverbed Ltd., a private company following ASPE, issued a $150,000, 3-year, zero-interest bond dated January 1, 2023. The market
interest rate for similar bonds was 10%. Assume the company used the straight-line method of amortization.
Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2023. (List all debit entries before
credit entries. 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. Round answers to 0 decimal places, e.g. 5,275.)
Date
January 1, 2023
December 31, 2023
Account Titles
List of Accounts
Cash
Bonds Payable
Interest Expense
Bonds Payable
eTextbook and Media
Debit
Credit
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