Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term...

  

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Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term of the bonds is September 1, 2020, to September 1, 2028, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%. Prepare the company's journal entry for the September 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.) Account Titles and Explanation Debit Credit Prepare the company's journal entry for the December 1 interest payment. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Whispering Winds Limited issued $4,000,000 of 11% bonds on September 1, 2020, for $4,704,050. The term of the bonds is September 1, 2020, to September 1, 2028, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%. Prepare the company's journal entry for the September 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.) Account Titles and Explanation Debit Credit Prepare the company's journal entry for the December 1 interest payment. (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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

Date Account Dr Cr 20200901 cash 4704050 bond... View the full answer