On January 1, Newkirk Company issued $482,000, 10%, 10-year bonds at face value.

Question

On January 1, Newkirk Company issued $482,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1.

Prepare journal entries to record the accrual of interest on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare journal entries to record the payment of interest on January 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Jan. 1

Explanation / Answer

Hi,

Please find the answer as follows:

Part A:

Part B:

Part C:

Date Account Titles and Explanation Debit Credit Jan-01 Cash 482000

Bonds Payable
482000

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