Solution-Prepare the journal entry to record the issuance

Prepare the journal entry to record the issuance of bonds

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Reference no: EM132787301

Question - On May 1, 2020, Carla Vista Corp. issued $600,000, %9, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 1. Financial statements are prepared annually on December 31.

Required -

a) Prepare the journal entry to record the issuance of bonds.

b) Record the actual interest on 31/12/20.

c) Journalize the payment of interest on 1/5/21.

d) Assume Al majed enterprise will issue bond al a premium of 20% show journal entry.

e) Assume Al majed Enterprise will issue the bond at discount of 7% show journal entry.

Reference no: EM132787301

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Prepare the journal entry to record the issuance of bonds : On May 1, 2020, Carla Vista Corp. issued $600,000, %9, 5-year bonds at face value. Prepare the journal entry to record the issuance of bonds

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Prepare the journal entry to record the issuance of bonds

Reference no: EM132787301

Reference no: EM132787301

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