Frankum Company has issued three diff erent bonds during 2020. Interest is payable annually on each of these bonds. 1. On January 1, 2020, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2020, were issued at face value. 2. On July 1, $900,000, 9%, 5-year bonds dated July 1, 2020, were issued at 102. 3. On September 1, $400,000, 7%, 5-year bonds dated September 1, 2020, were issued at 98. Prepare the journal entry to record each bond transaction at the date of issuance.

Frankum Company has issued three diff erent bonds during 2020. Interest is payable annually on each of these bonds. 1. On January 1, 2020, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2020, were issued at face value. 2. On July 1, $900,000, 9%, 5-year bonds dated July 1, 2020, were issued at 102. 3. On September 1, $400,000, 7%, 5-year bonds dated September 1, 2020, were issued at 98. Prepare the journal entry to record each bond transaction at the date of issuance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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