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Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done

Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done
Transcribed Image Text:Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done
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