The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on June 30 and mature onJune 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually on December 31and June 30.Required:1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021and interest on June 30, 2022 (at the effective rate).View transaction listJournal entry worksheet13>Record the issuance of the bond on June 30, 2021.Note: Enter debits before credits.DateGeneral JournalDebitCreditJune 30, 2021Journal entry worksheet123>Record the interest on December 31, 2021 (at the effective rate).Note: Enter debits before credits.DateGeneral JournalDebitCreditDecember 31, 2021Journal entry worksheet123>Record the interest on June 30, 2022 (at the effective rate).Note: Enter debits before credits.DateGeneral JournalDebitCreditJune 30, 2022Record entryClear entryView general journal

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Description: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on June 30 and mature onJune 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually on Decem

The financial instrument which provides fixed interest as a return over the period of investment is…

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Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June 30, 2021, interest on December 31, 2021 and interest on June 30, 2022 (at the effective rate).

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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