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Millennial Works, Inc. issued $5,000,000 of 8%, five-year bonds on April 30, 2019. Interest on the...

Millennial Works, Inc. issued $5,000,000 of 8%, five-year bonds on April 30, 2019. Interest on

the bonds is due on October 31, and April 30 beginning on October 31. 2019:

Required:

  Prepare the journal entries necessary to record the 2019 activity if the bonds were sold to

yield 8%.

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Answer #1
Date Account Titles and Explanation Debit Credit
April 30, 2019 Cash $5,000,000
Bonds Payable $5,000,000
October 31, 2019 Interest Expense (5,000,000*8%*6/12) $200000
Cash $200000
December 31, 2019 Interest Expense (5,000,000*8%*2/12) 66666.67
Interest Payable 66666.67
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