Homework Answers
Journal entries are as follows:
| Date | Account and Explanation | Debit($) | Credit($) |
|---|---|---|---|
| June 30, 2021 | Cash ($19,200,000 * 4%) | 768,000 | |
| Discount on Bond | 92,000 | ||
| Interest Revenue ($17,200,000 * 5%) | 860,000 | ||
| (Recorded the Interest Revenue) | |||
| Dec.31, 2021 | Cash ($19,200,000 * 4%) | 768,000 | |
| Discount on Bond | 96,600 | ||
| Interest Revenue ($17,200,000 + $92,000) * 5%) | 864,600 | ||
| (Recorded the Interest Revenue) |
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and December 31. Universal uses the straight-line method. (FV of
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(Use appropriate factor(s) from the tables
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