Question: Hello, I am having trouble computing the amounts for the journal entries that are red. I am using a financial calculator, so I would prefer
Hello, I am having trouble computing the amounts for the journal entries that are red. I am using a financial calculator, so I would prefer step by step instructions on how to get the correct answer using a calculator. Thank you!
On January 1, 2020, Sheridan Corporation issued $560,000 of 7% bonds, due in 10 years. The bonds were issued for $601,659, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Sheridan uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. (a) Date Jan. 1, 2020 Account Titles and Explanation | Cash 601659 Premium on Bonds Payable 41659 Bonds Payable 560000 July 1, 2020 Interest Expense 18050 Premium on Bonds Payable 1550 Cash 19600 (c) Dec. 31, 2020 V Interest Expense 18096 Premium on Bonds Payable 1504 Interest Payable 19600
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