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Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
Edition 4ISBN: 978-1111581565Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
Edition 4ISBN: 978-1111581565 Exercise 8
PROBLEM DATA
The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.
REQUIREMENT
Prepare journal entries in the space provided below to record (a) the issuance of the bond, (b) the interest payment and required amortization for Year 1 using the straight-line method of amortization, and (c) the interest payment and required amortization for Year 1 using the effective interest method of amortization.
The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.
REQUIREMENT
Prepare journal entries in the space provided below to record (a) the issuance of the bond, (b) the interest payment and required amortization for Year 1 using the straight-line method of amortization, and (c) the interest payment and required amortization for Year 1 using the effective interest method of amortization.
Explanation
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When bonds are issued and amortized, a j...
Excel Applications for Accounting Principles 4th Edition by Gaylord Smith
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