Verizon 11:13 PM ezto.mheducation.com Chapter 10-Assigoment &00 points On Januar
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Verizon 11:13 PM ezto.mheducation.com Chapter 10-Assigoment &00 points On January 1, Innovative Solutions· Inc, issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,243 Complete the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102. no entry is required for a transaction/event, select"No Journal Entry Required" in the first account field.) Journal entry worksheet Record the issuance o Hines References Bok&Explanation / Answer
Date Account Debit credit jan 1 Cash 210000 Bond payable 210000 [Being bond issued at par] 31 dec Interest expense 14700 cash 14700 [interest paid 210000*.07] 31 dec Bond payable 210000 Loss on retirement of bond 4200 Cash [210000*102/100] 214200 [being bond retired ]
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