A company issues 20,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2022. Interest...

Transcribed Image Text:

A company issues €20,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and January 1. The proceeds from the bonds are €19,604,145. Required: (Don not approxiinate the number and do not use a comma) 1- Prepare the journal entry to record the issuance of a bond on January 1, 2022. Debit Credit 2- Prepare the journal entry to record the interest payment on June 30, 2022. Debit Credit 수 3. Prepare the Journal entry to record the accrual of interest on December 31, 2022. Credit Debit A company issues €20,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and January 1. The proceeds from the bonds are €19,604,145. Required: (Don not approxiinate the number and do not use a comma) 1- Prepare the journal entry to record the issuance of a bond on January 1, 2022. Debit Credit 2- Prepare the journal entry to record the interest payment on June 30, 2022. Debit Credit 수 3. Prepare the Journal entry to record the accrual of interest on December 31, 2022. Credit Debit

Answer rating: 100% (QA)

Step 1 of 3 The Amortization of Discount is required to be computed for two interest payment period basis the effective rate of interest method The Sc... View the full answer