The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967707. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). View transaction list Journal entry worksheet 1 2 Record the issuance of the bond on June 30, 2021. 3 Note: Enter debits before credits. Date June 30, 2021 Record entry General Journal Clear entry Debit Credit View general journal

The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967707. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate). View transaction list Journal entry worksheet 1 2 Record the issuance of the bond on June 30, 2021. 3 Note: Enter debits before credits. Date June 30, 2021 Record entry General Journal Clear entry Debit Credit View general journal

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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