Martinez Corporation issued $580,000 of 9% bonds on November 1, 2025, for $619,414. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Martinez uses the effective-interest method with an effective rate of 8%. Click here to view factor tables. Prepare Martinez's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Martinez Corporation issued $580,000 of 9% bonds on November 1, 2025, for $619,414. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Martinez uses the effective-interest method with an effective rate of 8%. Click here to view factor tables. Prepare Martinez's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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 16E
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