On January 1, 2018, Frog Corporation Issued $800,000, 8%, 10-Year

question 141

Essay

On January 1, 2018, Frog Corporation issued $800,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Frog Corporation has a calendar year end.
Instructions
Prepare all entries related to the bond issue for 2018.

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Definitions:

Reorganization Cost

Expenses associated with restructuring a company, which might include legal fees, severance pay, and costs for dismantling and reassembling departments.

Lawyer's Fees

Costs incurred for legal services provided by attorneys.

Amortized

The gradual write-off of the initial cost of an asset or liability over a period, typically through regular payments or charges against earnings.

Intangible Asset

A non-physical asset possessing value, such as patents, trademarks, copyrights, and goodwill.