Recording Bonds Issued at Face ValueYale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If thebonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31.a. January 1, 2020, for issuance of bonds.b. July 1, 2020,Cashc. December 3InventoryEquipmentDateDr.Cr.Landa. Jan. 1, 2020Deferred RevenueBonds PayableDiscount on Bonds Payableb. Jul. 1, 2020Discount and Debt Issuance CostsPremium on Bonds PayableFair Value Adjustment-Bonds PayableNote PayableDiscount on Note Payableс. Dec. 31, 202Premium on Note PayableFair Value Adjustment-Note PayableInterest PayablePlease answerCommon StockPaid-in Capital in Excess of Par-Common StockPaid-in Capital-Stock WarrantsRetained Earnings-Prior Period AdjustmentDebt Conversion ExpensePreviousNextInterest ExpenseLoss on Redemption of BondsGain on Redemption of BondsUnrealized Gain or Loss-IncomeUnrealized Gain or Loss-OCI Recording Bonds Issued at Face ValueYale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If thebonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31.a. January 1, 2020, for issuance of bonds.b. July 1, 2020, for the interest payment.c. December 31, 2020, for the adjusting entry.DateAccount NameDr.Cr.a. Jan. 1, 2020b. Jul. 1, 2020c. Dec. 31, 2020Please answer all parts of the question.

Working: Semiannual interest = Face value of the bonds x rate of interest x no. of months / 12 =…

Yale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If the bonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31. a. January 1, 2020, for issuance of bonds. b. July 1, 2020, for the interest payment. c. December 31, 2020, for the adjusting entry. Date Account Name Dr. Cr. a. Jan. 1, 2020 수 b. Jul. 1, 2020 수 c. Dec. 31, 2020 수

Yale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on July 1 and January 1) 10-year bonds dated and sold on January 1, 2020. If the bonds were sold at face value, provide the journal entries to be made at each of the following dates. Yale's fiscal year ends on December 31. a. January 1, 2020, for issuance of bonds. b. July 1, 2020, for the interest payment. c. December 31, 2020, for the adjusting entry. Date Account Name Dr. Cr. a. Jan. 1, 2020 수 b. Jul. 1, 2020 수 c. Dec. 31, 2020 수

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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