On August 1,a Company Issues Bonds with a Par Value

question 35

Essay

On August 1,a company issues bonds with a par value of $600,000.The bonds mature in 10 years,and pay 6% annual interest,payable each February 1 and August 1.The bonds sold at $592,000.The company uses the straight-line method of amortizing bond discounts.The company's year-end is December 31.Prepare the general journal entry to record the interest accrued at December 31.

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Definitions:

Pretexting

The practice of obtaining personal or private information under false pretenses, often used in fraudulent activities.

Felony

A serious crime, typically involving violence, punishable by imprisonment for more than one year or by death.

Burglary

A crime in which someone unlawfully enters a building with intent to commit a felony or theft.

Robbery

The unlawful taking or attempted taking of personal property by force or threat of force and/or by putting the victim in fear.