8, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021)2. Record the first semiannual interest payment. (June 30, 2021)3. Record the second semiannual interest payment. (Dec. 31, 2021) Requlred Informatlon[The following information applies to the questions displayed below.]Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T-M Corporation issues $540,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 10 years.Interest is paid semiannually on June 30 and December 31.Requlred:1. If the market interest rate is 7%, the bonds will issue at $540,000. Record the bond issue on January 1, 2021, and the first twosemiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry Is requlred for a particular transactlon/event,select "No Journal Entry Requlred" In the first account fleld.)View transaction listJournal entry worksheet1 2 3Record the bond issue.Note: Enter debits before credits.DateGeneral JournalDebitCreditJanuary 01, 2021

Formula: Interest expense = Bond value x Time period x interest rate.

Answered: , Journal entry worksheet: 1. Record…

, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021) 2. Record the first semiannual interest payment. (June 30, 2021) 3. Record the second semiannual interest payment. (Dec. 31, 2021)

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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Question

8, Journal entry worksheet:

1. Record the bond issue. (Jan. 01, 2021)
2. Record the first semiannual interest payment. (June 30, 2021)
3. Record the second semiannual interest payment. (Dec. 31, 2021)

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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