Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1, 2019 when the market interest rate is 6.75%, the company issue $400,000 of the bonds at 105, and incurred bond issue cost of $15,000. Strick Stricky measures interest expenses by the effected interest method. The bonds pay interest semi-annually on June 30th and December 31st Prepare entry on page 2 of the General Journal on February 1, 2019 Prepare an amortization table for the first four semi-annual interest periods. Record the first semi- annual interest expense on June 30.
Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1, 2019 when the market interest rate is 6.75%, the company issue $400,000 of the bonds at 105, and incurred bond issue cost of $15,000. Strick Stricky measures interest expenses by the effected interest method. The bonds pay interest semi-annually on June 30th and December 31st Prepare entry on page 2 of the General Journal on February 1, 2019 Prepare an amortization table for the first four semi-annual interest periods. Record the first semi- annual interest expense on June 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1, 2019 when the market interest rate is 6.75%, the company issue $400,000 of the bonds at 105, and incurred bond issue cost of $15,000. Strick Stricky measures interest expenses by the effected interest method. The bonds pay interest semi-annually on June 30th and December 31st Prepare entry on page 2 of the General Journal on February 1, 2019 Prepare an amortization table for the first four semi-annual interest periods. Record the first semi- annual interest expense on June 30.
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