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Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200.000

Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries, Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200.000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200,000
Transcribed Image Text:Concord Corporation issued 2,700 6%, 5-year, $1,000 bonds dated January 1, 2025, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.) Date Jan. 1, 2025 Date Dec. 31. 2025 Account Titles and Explanation Date Cash Jan. 1, 2026 Bonds Payable (b) Prepare the adjusting journal entry on December 31, 2025, to record interest expense. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Interest Expense Cash Account Titles and Explanation Debit Interest Expense 2500,000 Interest Payable Debit (c) Prepare the journal entry on January 1, 2026, to record interest paid. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 200,000 Debit Credit 2500,000 200,000 Credit 200,000 Credit 200,000
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