question archive On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $200,000
On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $200,000
Subject:AccountingPrice: Bought3
On February 1, 2016, Sanford & Son issued 10% bonds dated February 1, 2016, with a face amount of $200,000. The bonds sold for $239,588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
| 1. |
Prepare the journal entry to record the bond issuance on February 1, 2016. |
| 2. |
Prepare the entry to record interest on July 31, 2016, using the straight-line method. |
| 3. |
Prepare the necessary journal entry on December 31, 2016. |
| 4. |
Prepare the necessary journal entry on January 31, 2017. |
