a. On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually
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a. On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond.
DATE | Debit | Credit | |
X/X | |||
b. Journalize the first annual interest payment on December 31, 20X1.
DATE | Debit | Credit | |
X/X | |||
c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.)
DATE | Debit | Credit | |
X/X | |||
d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction.
DATE | Debit | Credit | |
X/X | |||
Expert Answer:
a Journalize the issuance of the bond on January 1 20X1 DATE Debit Credit January 1 Cash 10389 Bonds ... View the full answer
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