Complete the required journal entries to record the bond issuance, interest paym

Question

Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 101. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 101. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

value: 2.00 points E10-8 Preparing Journal Entries to Record Issuance of Bonds at Face Value, Payment of Interest, and Early Retirement [LO 10-3] On January 1, Innovative Solutions, Inc. issued $120,000 in bonds at face value. The bonds have a stated interest rate of 6 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1, 2& 3. Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 101. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the issuance o f bonds of $120,000 at face value Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal

Explanation / Answer

Jan-01 Cash   120000      Bonds payable 120000 Dec-31 Interest expense 7200        Cash 7200 Jan-01 Bonds payable 120000 Loss on redemption of bonds 1200        Cash 121200

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