On August 1,2010,a Company Issues Bonds with a Par Value

question 168

Essay

On August 1,2010,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 31,2010.

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Definitions:

Allele

Alternative form of a gene; a gene pair contains two alleles.

Dominant Gene

A gene that expresses its phenotype over another gene (the recessive gene) when the two are present in a heterozygous condition.

Huntington Disease

A hereditary neurodegenerative disease characterized by motor dysfunction, cognitive decline, and psychiatric issues.

Twenty-First Chromosome

One of the 23 pairs of chromosomes in humans, with an abnormality in this chromosome causing Down syndrome.