Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1.
Question:
Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.
a. Prepare the journal entry to record the sale of these bonds on January 1, 2020.
b. Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020.
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Step by Step Answer:
a Jan 1 Cash 96 X 5000000 4800000 Discount on Bonds Payable 200000 ...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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