[The following Information applies to the questions displayed below.] Duval Company Issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and Interest is paid semiannually on June 30 and December 31. Prepare Journal entries to record the first two Interest payments.
[The following Information applies to the questions displayed below.] Duval Company Issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual contract rate is 7%, and Interest is paid semiannually on June 30 and December 31. Prepare Journal entries to record the first two Interest payments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
[The following Information applies to the questions displayed below.]
Duval Company Issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual
contract rate is 7%, and Interest is paid semiannually on June 30 and December 31.
2. Prepare journal entries to record the first two Interest payments.
View transaction list
Journal entry worksheet
<
1
2
Record the interest payment and discount amortization on June 30, 2021.
Note: Enter debits before credits.
Date
June 30, 2021
General Journal
Debit
Credit
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba78d3aa-d292-4f2c-9eb0-0e0844e8193a%2F74da38bb-d808-4432-b52f-2596c92f0e9a%2F4q54l65_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following Information applies to the questions displayed below.]
Duval Company Issues four-year bonds with a $100,000 par value on January 1, 2021, at a price of $95,952. The annual
contract rate is 7%, and Interest is paid semiannually on June 30 and December 31.
2. Prepare journal entries to record the first two Interest payments.
View transaction list
Journal entry worksheet
<
1
2
Record the interest payment and discount amortization on June 30, 2021.
Note: Enter debits before credits.
Date
June 30, 2021
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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