Sheridan Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1,600, 8%, 5-year, $1,000 bonds dated January 1, 2022, were issued at face value. 2. On July 1, $855,000, 9%, 5-year bonds dated July 1, 2022, were issued at 104. 3. On September 1, $234,000, 7%, 5-year bonds dated September 1, 2022, were issued at 97. Prepare the journal entry to record each bond transaction at the date of issuance.

Sheridan Company has issued three different bonds during 2022. Interest is payable annually on each of these bonds. 1. On January 1, 2022, 1,600, 8%, 5-year, $1,000 bonds dated January 1, 2022, were issued at face value. 2. On July 1, $855,000, 9%, 5-year bonds dated July 1, 2022, were issued at 104. 3. On September 1, $234,000, 7%, 5-year bonds dated September 1, 2022, were issued at 97. Prepare the journal entry to record each bond transaction at the date of issuance.

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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