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On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market (efflective) interest rate of 5%, receiving cash of $39,832,698 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds 2. Journalize the entries to record the following a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Journal 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.

On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market (efflective) interest rate of 5%, receiving cash of $39,832,698 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds 2. Journalize the entries to record the following a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Journal 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...
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On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market (efflective) interest rate of 5%, receiving cash of $39,832,698 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds 2. Journalize the entries to record the following a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Journal 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.
Transcribed Image Text:On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market (efflective) interest rate of 5%, receiving cash of $39,832,698 Interest on the bonds is payable semiannually on December 31 and June 30 The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds 2. Journalize the entries to record the following a The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. Journal 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered.
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