On February 1, 2024, Wolf Incorporated issued 10% bonds dated February 1, 2024, with a face amount
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Question:
On February 1, 2024, Wolf Incorporated issued 10% bonds dated February 1, 2024, with a face amount of $240,000. The bonds sold for $287,503 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.
Required:
Prepare the journal entry to record the bond issuance on February 1, 2024.
Prepare the entry to record interest on July 31, 2024.
Prepare the necessary journal entry on December 31, 2024.
Prepare the necessary journal entry on January 31, 2025.
Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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