On September 1, 2010, Elmdale Corporation issued $600,000, 8%, 10-year bonds at face value. Interest is payable

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On September 1, 2010, Elmdale Corporation issued $600,000, 8%, 10-year bonds at face value. Interest is payable annually on September 1. Elmdale’s year-end is December 31.
Instructions
Prepare journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2010.
(c) The payment of interest on September 1, 2011.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Accounting Tools for Business Decision Making

ISBN: 978-0470239803

5th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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