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28 Sep 2019
On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $260,000. The bonds sold for $311,461 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year.
A. Prepare the journal entry to record the bond issuance on February 1, 2016.
B. Prepare the entry to record interest on July 31, 2016, using the straight-line method
C. Prepare the necessary journal entry on December 31, 2016.
D. Prepare the necessary journal entry on January 31, 2017
On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $260,000. The bonds sold for $311,461 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year.
A. Prepare the journal entry to record the bond issuance on February 1, 2016.
B. Prepare the entry to record interest on July 31, 2016, using the straight-line method
C. Prepare the necessary journal entry on December 31, 2016.
D. Prepare the necessary journal entry on January 31, 2017
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27 Mar 2022
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Nelly StrackeLv2
28 Sep 2019
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