Marigold Corp. issued $228,000,7%, 15-year bonds on December 31, 2021, for $209,760. Interest is payable...
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Marigold Corp. issued $228,000,7%, 15-year bonds on December 31, 2021, for $209,760. Interest is payable annually on December 31. Marigold uses the straight-line method to amortize bond premium or discount. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, 2021 Cash 209760 Discount on Bonds Payable 18240 Bonds Payable 228000 e Textbook and Media List of Accounts (b) Your answer is partially correct. Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31, Interest Expense 15960 2022 Discount on Bonds Payable 1216 Interest Payable 14744 e Textbook and Media List of Accounts
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