On August 1. 2022, Monty Corp. issued $490,800, 8%, 10-year bonds at face value. Interest is...

 

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On August 1. 2022, Monty Corp. issued $490,800, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Monty's year-end is December 31. Prepare a tabular summary to record the following events. (a) The issuance of the bonds. (b) The accrual of interest on December 31, 2022. (c) The payment of interest on August 1, 2023. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Cash Bonds Pay. Interest Pay. Con (a) Aug.1, 20122 $ %24 (b) Dec. 31, 2022 (c) Aug. 1, 2023 On August 1. 2022, Monty Corp. issued $490,800, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Monty's year-end is December 31. Prepare a tabular summary to record the following events. (a) The issuance of the bonds. (b) The accrual of interest on December 31, 2022. (c) The payment of interest on August 1, 2023. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities Cash Bonds Pay. Interest Pay. Con (a) Aug.1, 20122 $ %24 (b) Dec. 31, 2022 (c) Aug. 1, 2023

Answer rating: 100% (QA)

MONTY CORP Journal Entries Date Particulars Debit Cedit S S 010822 Cash ac Dr 490800 8 Bonds P... View the full answer