Problemon january 1 2013 jws corporation issued 627000 of 9, Ask an Expert

Accounting

Problem:

On January 1, 2013, JWS Corporation issued $627,000 of 9% bonds, due in 10 years. The bonds were issued for $587,931, and pay interest each July 1 and January 1. JWS uses the effective-interest method.

Required:

Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 10%

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165031

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