Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. on july 1, the doggy daze company issues $200,0

1. On July 1, the Doggy Daze Company issues $200,000 of bonds. The contract rate...

50.1K

Verified Solution

Question

Accounting

1. On July 1, the Doggy Daze Company issues $200,000 of bonds. The contract rate is 5% and on the date of issuance, the bonds were issued at $102,695. The bonds mature in 5 years and pay semi-annual interest.

A. Calculate the selling price of the bonds.

B. Prepare the journal entry to record the issuance of the bonds.

C. Prepare the journal entry to record the first interest payment on Dec 31.

2. On January 1, BUZZ Company issued %500,000 of bonds for $486,250. The bonds have a contract rate of 3% and were issued when the market rate was 4%. The bonds pay interest annually and mature in 20 years.

A. Prepare the journal entry for the issuance of the bonds on Jan 1.

B. Prepare the journal entry to record the first interest payment on Dec 31.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students