On August 1, 2017, Blue Spruce Corp. issued $507,600, 6%, 10-year bonds at face
ID: 2514786 • Letter: O
Question
On August 1, 2017, Blue Spruce Corp. issued $507,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Blue Spruce’s year-end is December 31.
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
On August 1, 2017, Blue Spruce Corp. issued $507,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Blue Spruce’s year-end is December 31.
Explanation / Answer
Journal Entry No. Date Accounts title and explanations Debit $ Credit $ a. Aug 1 2017 Cash Account Dr. 507600 6% Bonds payable 507600 b. Dec 31 2017 Interest expense dr. 12690 Interest Payable 12690 c. Aug 1 2018 Interest expense Dr. 17766 Interest payable Dr. 12690 Cash Account 30456
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