a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond.DATEDebitCreditXIXb. Journalize the first annual interest payment on December 31, 20X1.DATEDebitCreditXIXc. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.)DATEDebitCreditXIXd. On January 1, 20X2, the bonds are called at 99. Journalize this transaction.DATEDebitCreditXIX

The financial transactions are initially recorded in the for of journal entry.

Answered: a. On January 1, 20X1, your firm issues…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit X/X