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Exercise 10-9 On January 1, Sandhill Co. issued $344,000, 9%, 15-year bonds at face value. Interest...

Exercise 10-9

On January 1, Sandhill Co. issued $344,000, 9%, 15-year bonds at face value. Interest is payable annually on January 1.

Prepare journal entry to record the issuance of the bonds.

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

Prepare journal entry to record the accrual of interest on December 31.

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

Prepare journal entry to record the payment of interest on January 1.

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

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Answer #1

Account Titles and Explanation Debit Credit Jan 1 344,000 Cash Bonds payable (to record issuance of bonds) 344,000 30,960 Int

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