On January 1, 2022, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds
Question:
On January 1, 2022, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. Prepare the company’s journal entries for
(a) The January 1 issuance,
(b) The July 1 interest payment,
(c) The December 31 adjusting entry. Assume an effective-interest rate of 8%.
Step by Step Answer:
a The January 1 issuance Debit Cash 559224 Credit Bond Payab...View the full answer
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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