Need help with accounting On January 1. when the market interest rate was 9 percent, Selton Corporation completed a $200,000, 8 percent bond issue for$187.163. The bonds were dated January 1. pay interest each December 31, and mature in ten years. Selton amortizes the bonddiscount using the straight-line method. Assume Selton Corporation uses the effective-interest method to amortize the bond discount.Required:1. Prepare the journal entry to record the bond issuance. (If no entry Is requlred for a transection/event, select "No Journal entryrequlred" In the first account fleld.)View transaction listJournal entry worksheet1.Record the issuance of bonds.Note: Enter debits before credits,DateGeneral JournalDebitCreditJanuary 01Cash187,163Discount on bonds payable12,837Bonds payable200,000Record entryClear entryView general journal 2. Prepare the journal entry to record the interest payment on December 31. (If no entry Is required for a transactlon/event, select"No Journal entry requlred" In the first occount fleld. Round your answers to the nearest dollar amount.)View transaction listJournal entry worksheetRecord the interest payment on December 31.Nete: Enter debits befere credits.DateGeneral JournalDebitCreditDecember 31Interest expenseDiscount on bonds payableCash16,000Record entryClear entryView general journal3. Prepare a bond discount amortization schedule for these bonds. (Round your answers to the nearest doller amount.)Changes During the PeriodEnding Bond Liability BalancesPeriodEndedInterestExpenseCashPaidInterest BondsExpense PayableDiscount onBondsPayableCarryingValueStartYr 1 EndYr 2 EndYr 3 EndYr 4 EndYr 5 EndYr 6 EndYr7 EndYr 8 EndYr 9 EndYr 10 End

Solution 1: Journal Entries - Selton Corporation Date Particulars Debit Credit…

On January 1, when the market interest rate was 9 percent, Selton Corporation completed a $200,000, 8 percent bond issue for $187.163. The bonds were dated January 1. pay interest each December 31, and mature in ten years. Selton amortizes the bond discount using the straight-line method. Assume Selton Corporation uses the effective-interest method to amortize the bond discount. Requlred: 1. Prepare the journal entry to record the bond issuance. (If no entry Is requlred for a transactlon/event, select "No Journal entry requlred" In the first account fleld.)

On January 1, when the market interest rate was 9 percent, Selton Corporation completed a $200,000, 8 percent bond issue for $187.163. The bonds were dated January 1. pay interest each December 31, and mature in ten years. Selton amortizes the bond discount using the straight-line method. Assume Selton Corporation uses the effective-interest method to amortize the bond discount. Requlred: 1. Prepare the journal entry to record the bond issuance. (If no entry Is requlred for a transactlon/event, select "No Journal entry requlred" In the first account fleld.)

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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