year. Complete the necessary journal entry for June 30 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Knowledge Check 01
On December 31 Spearmint, Incorporated, issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the
related entry, Bonds Payable had a balance of $450,000 and Premium on Bonds Payable had a balance of $11,795. Spearmint uses the
straight-line bond amortization method. The first semiannual interest payment was made on June 30 of the next year.
Complete the necessary journal entry for June 30 by selecting the account names from the drop-down menus and entering the dollar
amounts in the debit or credit columns.
Transcribed Image Text:Knowledge Check 01 On December 31 Spearmint, Incorporated, issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the related entry, Bonds Payable had a balance of $450,000 and Premium on Bonds Payable had a balance of $11,795. Spearmint uses the straight-line bond amortization method. The first semiannual interest payment was made on June 30 of the next year. Complete the necessary journal entry for June 30 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
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