ment CALCULATOR FULL SCREEN PRINTER VERSION Exercise 10-9 On January 1, Sheridan

Question

ment CALCULATOR FULL SCREEN PRINTER VERSION Exercise 10-9 On January 1, Sheridan Company issued $434,000, 9%, 20-year bonds at face value. Interest is payable annually on January 1. Prepare journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Prepare journal entry to record the accrual of inerston ecember 31. (Credit account tities are automatically indented 1. (Credit account titles are automatically indented when amount is e not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Prepare journal entry to record the payment of interest on January 1. (Credit account titles are automatically indented when amount is ent not indent manually.) Debit Credit Date Account Titles and Explanation 8:4

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Jan 1 Cash 434000      Bonds payable 434000 (To record issue bonds payable) Dec 31 Interest expense (434000*9%) 39060      Interest payable 39060 (To record accured interest) Jan 1 Interest payable 39060     cash 39060 (To record payment of interest)

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.