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The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10% Interest is paid semiannually on December 31 and June 3O. 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). View transaction list Journal entry worksheet 1. <> Record the issuance of the bond on June 30, 2021.

The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10% Interest is paid semiannually on December 31 and June 3O. 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). View transaction list Journal entry worksheet 1. <> Record the issuance of the bond on June 30, 2021.

Principles of Accounting Volume 1
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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The Gorman Group Issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 3O. 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). View transaction list Journal entry worksheet 3 Record the issuance of the bond on June 30, 2021. Note: Enter debits before credits.
Transcribed Image Text:The Gorman Group Issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated on June 30 and mature on June 30, 2041 (20 years). The market yield for bonds of similar risk and maturity is 10%. Interest is paid semiannually on December 31 and June 3O. 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). View transaction list Journal entry worksheet 3 Record the issuance of the bond on June 30, 2021. Note: Enter debits before credits.
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