On March 1, Year 1, a company issued 12% bonds, dated March 1, with a face...

 

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On March 1, Year 1, a company issued 12% bonds, dated March 1, with a face amount of $720,000. . The bonds sold for $714,000 and mature on February 28, Year 21 (20 years). Interest is paid semiannually on August 31 and February 28. The company uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by a company on March 1, Yea interest on August 31, Year 1, accrued interest on December 31, Year 1, and interest on February 28, Y 2. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, selec "No journal entry required" in the first account field. On March 1, Year 1, a company issued 12% bonds, dated March 1, with a face amount of $720,000. . The bonds sold for $714,000 and mature on February 28, Year 21 (20 years). Interest is paid semiannually on August 31 and February 28. The company uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by a company on March 1, Yea interest on August 31, Year 1, accrued interest on December 31, Year 1, and interest on February 28, Y 2. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, selec "No journal entry required" in the first account field.

Answer rating: 100% (QA)

1 Issuance of Bonds on March 1 Year 1 Debit Cash 714000 Credit Bonds Payable 720000 Credit Discount ... View the full answer