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Title: On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest payments ... Post by: Harrison on Nov 10, 2017 On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest payments on January 1. The bonds were issued at face value. Note JetNew uses the effective-interest method of amortization.
a. Prepare the necessary journal entries to record the issuance of the bonds, December 31, 2013 year- end entries if required and the first interest payment. b. Prepare the journal entry to record the bond's maturity. Title: Re: On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest ... Post by: rjckE on Nov 10, 2017 a. Jan.1 Cash 300,000
Bonds Payable 300,000 Dec.31 Interest Expense 24,000 ($300,000 × 0.08) Interest Payable 24,000 Jan.1 Interest Payable 24,000 Cash 24,000 b. Jan.1 Bonds Payable 300,000 Cash 300,000 |