On January 1, 2023, Blossom Corporation issued $801,000 of 5% bonds that are due in 11...

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On January 1, 2023, Blossom Corporation issued $801,000 of 5% bonds that are due in 11 years. The bonds were issued for $580,173 and pay interest each July 1 and January 1. The company uses the effective interest method. Assume an effective rate of 9%. (a) Your answer is correct. Prepare the company's journal entry for the January 1 issuance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit Cash Bonds Payable 580173 580173 Prepare the company's journal entry for the July 1 interest payment. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Interest Expense Bonds Payable Cash Debit 26108 Credit 6083 20025 On January 1, 2023, Blossom Corporation issued $801,000 of 5% bonds that are due in 11 years. The bonds were issued for $580,173 and pay interest each July 1 and January 1. The company uses the effective interest method. Assume an effective rate of 9%. (a) Your answer is correct. Prepare the company's journal entry for the January 1 issuance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit Cash Bonds Payable 580173 580173 Prepare the company's journal entry for the July 1 interest payment. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Interest Expense Bonds Payable Cash Debit 26108 Credit 6083 20025

Answer rating: 100% (QA)

The journal entry for the January 1 issuance is Debi... View the full answer