esto Corporation has authorized to issue$4,500,000 of its 9%, 5-year bonds On January 1, 2019, when the effective interest rate 6%. The bonds interest is semiannually on July 1, and January 1. On march 31, 2021 purchased 1,500,000 $ of its issued bonds on the open market at $1,640,000 for interest and bonds and cancelled them. Resto uses the effective interest rate method for amortization of bond premiums and discounts.Required:1- Journalize the bonds issued?
esto Corporation has authorized to issue$4,500,000 of its 9%, 5-year bonds On January 1, 2019, when the effective interest rate 6%. The bonds interest is semiannually on July 1, and January 1. On march 31, 2021 purchased 1,500,000 $ of its issued bonds on the open market at $1,640,000 for interest and bonds and cancelled them. Resto uses the effective interest rate method for amortization of bond premiums and discounts.Required:1- Journalize the bonds issued?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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Resto Corporation has authorized to issue$4,500,000 of its 9%, 5-year bonds On January 1, 2019, when the effective interest rate 6%. The bonds interest is semiannually on July 1, and January 1. On march 31, 2021 purchased 1,500,000 $ of its issued bonds on the open market at $1,640,000 for interest and bonds and cancelled them. Resto uses the effective interest rate method for amortization of bond premiums and discounts.
Required:
1- Journalize the bonds issued?
2- Journalize all interest entries during 2019?
4-
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