Ayayai Corp. issued 3,200 5 %, 5 -year, $ 1,000 bonds dated January 1, 2022, at face
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Question:
Ayayai Corp. issued 3,200 5%, 5-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 1, 2022 | enter an account title for the journal entry on January 1,2022 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on January 1,2022 | enter a debit amount | enter a credit amount |
(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31, 2022 | enter an account title for the journal entry on December 31,2022 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31,2022 | enter a debit amount | enter a credit amount |
(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Jan. 1, 2023 | enter an account title for the journal entry on January 1,2023 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on January 1,2023 | enter a debit amount | enter a credit amount |
Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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