MooreCorp. issued5.5%two-yearbonds payable with a face amount of$60,000when the market interest rate was5.5%.Moore'sfiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read therequirementLOADING.... Question content area bottomPart 1 a. Issuance of the bonds payable at par on July 1, 2018 Journal EntryDateAccounts and ExplanationsDebitCredit2018 Jul1 RequirementJournalize the following transactions forMoore.Include an explanation for each entry.a.Issuance of the bonds payable at par on July 1, 2018b.Accrual of interest expense on December 31, 2018c.Payment of cash interest on January 1, 2019d.Payment of the bonds payable at maturity (give the date)(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Bonds Payable - Bonds are the obligation that required to be paid at fixed duration of time. It…

Answered: Moore Corp. issued 5.5% two-year…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Question content area bottom

Part 1

a. Issuance of the bonds payable at par on July 1, 2018

Journal Entry
Date	Accounts and Explanations	Debit	Credit
2018
Jul	1

Requirement

Journalize the following transactions for

Moore.

Include an explanation for each entry.

a.	Issuance of the bonds payable at par on July 1, 2018
b.	Accrual of interest expense on December 31, 2018
c.	Payment of cash interest on January 1, 2019
d.	Payment of the bonds payable at maturity (give the date)

(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

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