Exercise 10-8 On August 1, 2017, Sarasota Corp. issued $496,800, 9%, 10-year bon
ID: 2513961 • Letter: E
Question
Exercise 10-8
On August 1, 2017, Sarasota Corp. issued $496,800, 9%, 10-year bonds at face value. Interest is payable annually on August 1. Sarasota’s year-end is December 31.
Date
Account Titles and Explanation
Debit
Credit
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Date
Account Titles and Explanation
Debit
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SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Exercise 10-8
On August 1, 2017, Sarasota Corp. issued $496,800, 9%, 10-year bonds at face value. Interest is payable annually on August 1. Sarasota’s year-end is December 31.
Explanation / Answer
1-Aug Cash 496800 Bonds Payable 496800 31-Dec Interest expense 18630 =496800*9%/12*5 Interest payable 18630 1-Aug Interest expense 26082 =496800*9%/12*7 Interest payable 18630 Cash 44712
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