Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2019, the pangborn company issued $1

On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable...

50.1K

Verified Solution

Question

Accounting

On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at $108,000 to yield a market rate of 5%. The bonds were dated January 1, 2019, and interest is paid semiannually on each June 30 and each December 31. The effective interest method is used for amortization and no adjusting journal entries were made during the year.

  1. Prepare the journal entry for the sale of the bonds.
  2. Prepare the journal entry to record the first interest payment and include the appropriate date before the entry.
  3. Prepare the journal entry to record the second interest payment and include the appropriate date before the entry.

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