Refer to the information in RE13 1 Prepare the journal entry
Refer to the information in RE13-1. Prepare the journal entry' on June 30 for Gatrong to record the first interest receipt, using the effective interest method. Round to the nearest dollar.
In RE13-1
On January' 1, 2016, Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a face value of $200,000. It expects to hold these bonds until maturity. The bonds pay interest semiannually on June 30 and December 31. Gatrong paid $215,443, a price that yields a 10% effective annual interest rate.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help