Stone Company issued a $1,000,000,5-year bond on January 1,2019.The bond was dated January 1,2019 with an 8% coupon rate,paying interest annually on December 31,and was issued for $1,084,250 at a time when the market rate of interest was 6%.Stone uses the effective-interest method to account for its bonds.
Prepare the necessary journal entry for each of the following dates (round your answers to the nearest whole dollar amount):
(a)January 1,2019
(b)December 31,2019
(c)December 31,2020

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The Answer of Stone Company issued a $1,000,000,5-year bond on January 1,2019.The bond was dated January 1,2019 with an 8% coupon rate,paying interest annually on December 31,and was issued for $1,084,250 at a time when the market rate of interest was 6%.Stone uses the effective-interest method to account for its bonds.
Prepare the necessary journal entry for each of the following dates (round your answers to the nearest whole dollar amount):
(a)January 1,2019
(b)December 31,2019
(c)December 31,2020

Stone Company Issued a $1,000,000,5-Year Bond on January 1,2019