Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at97. The journal entry to record the issue will show aa.credit to Discount on Bonds Payable for $30,000.b.credit to Bonds Payable for $1,000,000.Oc.debit to Cash for $970,000.d. debit to Cash for $1,000,000.On January 1, 2021, $1,000,000, 5-year, 5% bonds, were issued for $957,345. Theinterest rate in effect when the bonds were issued was 6%. Interest is paid semi-annually on January 1 and July 1. What would be the amortized cost of the bonds onJanuary 1, 2022?a.$1,000,000b. $964,897$961,065d. $957,345NO C.

Since you have asked multiple question, we will solve the first question for you. If you want any…

Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal entry to record the issue will show a a. credit to Discount on Bonds Payable for $30,000. b. credit to Bonds Payable for $1,000,000. Oc. debit to Cash for $970,000. d. debit to Cash for $1,000,000.

Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal entry to record the issue will show a a. credit to Discount on Bonds Payable for $30,000. b. credit to Bonds Payable for $1,000,000. Oc. debit to Cash for $970,000. d. debit to Cash for $1,000,000.

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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Question

Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at
97. The journal entry to record the issue will show a
a.
credit to Discount on Bonds Payable for $30,000.
b.
credit to Bonds Payable for $1,000,000.
Oc.
debit to Cash for $970,000.
d. debit to Cash for $1,000,000.
On January 1, 2021, $1,000,000, 5-year, 5% bonds, were issued for $957,345. The
interest rate in effect when the bonds were issued was 6%. Interest is paid semi-
annually on January 1 and July 1. What would be the amortized cost of the bonds on
January 1, 2022?
a.
$1,000,000
b. $964,897
$961,065
d. $957,345
NO C.

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