
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Sunland Company issues $4,000,000, 10-year, 14% bonds at 98, with interest payable annually on January 1. The straight-line method
is used to amortize bond discount.
(a)
Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
(b)
Date Account Titles and Explanation
Jan. 1
eTextbook and Media
List of Accounts
Save for Later
Date Account Titles and Explanation
Debit
Dec. 31
Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2022. (Credit
account titles are automatically indented when amount is entered. Do not indent manually.)
Credit
Debit
Attempts: 0 of 5 used Submit Answer
Credit
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