The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued...
The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued interest on June 1, 2020. The term of the bonds was January 1, 2020, to January 1, 2026, with interest payable semi-annually each January 1 and July 1 at 7%. Buffalo uses the effective interest method.
Prepare the company’s journal entry for the July 1 interest
payment. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no
entry is required, select "No Entry" for the account titles and
enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|---|
|
July 1, 2020 |
please give the current formula
Homework Answers
July 1 interest payment
|
Date |
Account titles and explanation |
Debit |
Credit |
|
July 1, 2020 |
Interest expense (7000*300*7%*6/12) |
73500 |
|
|
Cash |
73500 |
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The City of Buffalo issued 300 bonds at their face value of
$7,000 each plus accrued...
The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued...
The City of Buffalo issued 300 bonds at their face value of $7,000 each plus accrued interest on June 1, 2020. The term of the bonds was January 1, 2020, to January 1, 2026, with interest payable semi-annually each January 1 and July 1 at 7%. Buffalo uses the effective interest method. Prepare the company’s journal entry for the date of issuance June 1, 2020 Dr. Cash Cr. Binds Payable Cr. Interest Expense Prepare the company’s journal entry...
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(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
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Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
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Prepare the journal entry to record the accrual of interest on
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automatically indented when amount is entered....
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