On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The...

 

 

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On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were issued for $590,744, and pay interest each July 1 and January 1. Pina uses the effective-interest method. 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. Assume an effective-interest rate of 10%. (Round answers to O 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 1. 1, 2025 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable 1,2025 Interest Expense Discount on Bonds Payable Cash Debit 590744 39256 29537 Credit 630000 1187 28350 On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were issued for $590,744, and pay interest each July 1 and January 1. Pina uses the effective-interest method. 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. Assume an effective-interest rate of 10%. (Round answers to O 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date 1. 1, 2025 Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable 1,2025 Interest Expense Discount on Bonds Payable Cash Debit 590744 39256 29537 Credit 630000 1187 28350

Answer rating: 100% (QA)

Answer Here are the journal entries for the given scenario January 1 ... View the full answer