The City of Fram issued 100 bonds at their face value of $6,000 each plus accrued interest
Question:
The City of Fram issued 100 bonds at their face value of $6,000 each plus accrued interest on June 1, 2020. The term of the bonds was January 1, 2020, to January 1, 2026, with interest payable semi-annually each January 1 and July 1 at 6%. Fram uses the effective interest method. Prepare journal entries for
(a) The date of issuance,
(b) The July 1 interest payment,
(c) The December 31 adjusting entry.
Step by Step Answer:
a Cash 615000 Bonds Payable 600000 Interest E...View the full answer
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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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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