Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on
Question:
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straightline method. Prepare journal entries for the following transactions.
A. July 1, 2018: entry to record issuing the bonds
B. Dec. 31, 2018: entry to record payment of interest to bondholders
C. Dec. 31, 2018: entry to record amortization of discount
Step by Step Answer:
Journal entry Date General Journal Debit Credit ...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
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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