On July 1, 2012, Charisse Corporation issued $2,483,600 face value, 12%, 10-year
ID: 2373973 • Letter: O
Question
On July 1, 2012, Charisse Corporation issued $2,483,600 face value, 12%, 10-year bonds at $2,793,113. This price resulted in an effective-interest rate of 10% on the bonds. Charisse uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.On July 1, 2012, Charisse Corporation issued $2,483,600 face value, 12%, 10-year bonds at $2,793,113. This price resulted in an effective-interest rate of 10% on the bonds. Charisse uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.
Prepare the journal entry to record the issuance of the bonds on July 1, 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Prepare the journal entry to record the issuance of the bonds on July 1, 2012. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
On July 1, 2012, Charisse Corporation issued $2,483,600 face value, 12%, 10-year bonds at $2,793,113. This price resulted in an effective-interest rate of 10% on the bonds. Charisse uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.
Explanation / Answer
CASH 2793113
SHARE HOLDERS EQUITY (2793113)
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