Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name To record the issuance of bonds. To record the first interest payment. Dr. Cr.
Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name To record the issuance of bonds. To record the first interest payment. Dr. Cr.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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Question
![Recording Bonds Issued at a Premium-Effective Interest
Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds
dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization
method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates.
a. January 1, for issuance of bonds.
b. June 30, for the first interest payment.
• Note: Round your answer to the nearest whole dollar.
Date
a. Jan. 1
b. June 30
Account Name
To record the issuance of bonds.
To record the first interest payment.
>
<<
Dr.
Cr.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2edb877-b534-4b97-81f1-f82495ad375e%2Fd636dabc-4eee-4787-a3ca-95183ded6312%2Fzb67mxb_processed.png&w=3840&q=75)
Transcribed Image Text:Recording Bonds Issued at a Premium-Effective Interest
Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds
dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization
method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates.
a. January 1, for issuance of bonds.
b. June 30, for the first interest payment.
• Note: Round your answer to the nearest whole dollar.
Date
a. Jan. 1
b. June 30
Account Name
To record the issuance of bonds.
To record the first interest payment.
>
<<
Dr.
Cr.
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