The Sarasota Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due...
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The Sarasota Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 99. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Sarasota Company records straight-line amortization semiannually. (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 Account Titles and Explanation 1.2025 Cash Discount on Bonds Payable Bonds Payable 1,2025 Interest Expense Discount on Bonds Payable Cash 31.2025 Interest Expense Debit 297000 3000 15000 15000 Credit 300000 300 14700 31, 2025 Interest Expense Discount on Bonds Payable Cash 15000 300 14700 The Sarasota Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 99. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Sarasota Company records straight-line amortization semiannually. (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 Account Titles and Explanation 1.2025 Cash Discount on Bonds Payable Bonds Payable 1,2025 Interest Expense Discount on Bonds Payable Cash 31.2025 Interest Expense Debit 297000 3000 15000 15000 Credit 300000 300 14700 31, 2025 Interest Expense Discount on Bonds Payable Cash 15000 300 14700
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