Riverbed Ltd., a private company following ASPE, issued a $150,000, 3-year, zero-interest bond dated January 1, 2023. The market interest rate for similar bonds was 10%. Assume the company used the straight-line method of amortization. Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date January 1, 2023 December 31, 2023 Account Titles Cash Bonds Payable Interest Expense Bonds Payable eTextbook and Media. Debit Credit

Riverbed Ltd., a private company following ASPE, issued a $150,000, 3-year, zero-interest bond dated January 1, 2023. The market interest rate for similar bonds was 10%. Assume the company used the straight-line method of amortization. Prepare the journal entry for the issue of the bond and the year-end journal entry at December 31, 2023. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date January 1, 2023 December 31, 2023 Account Titles Cash Bonds Payable Interest Expense Bonds Payable eTextbook and Media. Debit Credit

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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