On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for semiannual interest payments and they mature on July 1, 2039. The company received cash of $492,176, a price that provides an annual yield of 8%. The company's fiscal year ends on March 31. Using the interest method of accounting for bonds, prepare journal entries (to the nearest dollar) to record the following:

On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for semiannual interest payments and they mature on July 1, 2039. The company received cash of $492,176, a price that provides an annual yield of 8%. The company's fiscal year ends on March 31. Using the interest method of accounting for bonds, prepare journal entries (to the nearest dollar) to record the following:

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 8RE

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