Teter Company issued $700,000 par value, 5-year, 3% bonds on November 30, 2022. The bonds are dated
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Teter Company issued $700,000 par value, 5-year, 3% bonds on November 30, 2022. The bonds are dated July 1, 2022, and pay interest semiannually on June 30 and December 31. The bonds are sold at $723,807, including accrued interest, because they are sold between interest dates. The market rate of interest on the date of sale was 2.5%. Prepare the journal entries required to issue the bonds on November 30, 2022, and record the first interest payment on December 31, 2022.
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Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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