On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end.Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)Date Account Titles and Explanation Date◄►Account Titles and ExplanationDebitCredit On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end.Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for theaccount titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

Bonds are debt instruments raised to get fund with fixed rate of interest. Here interest rate is 8℅…

Answered: January 1, 2021, Sunrise Corporation…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end.

Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)

Date Account Titles and Explanation

Transcribed Image Text:On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.)

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