Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay interest each July 1 and January 1. Assume an effective-interest rate of 6%. Required: Prepare the company's journal entries for

Cornerstones of Financial Accounting
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Author:Jay Rich, Jeff Jones
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Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 48BE: Brief Exercise Debt Issued at Par On January 1, 2020, Desmond & Co. issued 5,000 bonds with a SI,000...
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Exercise 2:
On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds,
due in 10 years. The bonds were issued for $644,636, and pay
interest each July 1 and January 1. Assume an effective-interest rate
of 6%.
Required:
Prepare the company's journal entries for
1- The January 1 issuance.
2- The July 1 interest payment.
3- The Dec 31 adjusting entry.
Transcribed Image Text:Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay interest each July 1 and January 1. Assume an effective-interest rate of 6%. Required: Prepare the company's journal entries for 1- The January 1 issuance. 2- The July 1 interest payment. 3- The Dec 31 adjusting entry.
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