On July 1,2019,Bobby's Building Corp.issued $1,000,000 of 11% bonds dated July 1,2019 for $1,062,771.The bonds were sold to yield 10% and pay interest semiannually on July 1 and January 1.Bobby's Building Corp.uses the effective interest method of amortization.The company's fiscal year ends on February 28.
Required:
1.Prepare the journal entry on July 1,2019.
2.Prepare the amortization table for the first two interest periods.
3.Prepare the journal entry on January 1,2020.
4.Prepare the adjusting entry needed on February 28,2020.
Round all amounts to the nearest dollar.Omit explanations for all journal entries.
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2.
3.
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Question

On July 1,2019,Bobby's Building Corp.issued $1,000,000 of 11% bonds dated July 1,2019 for $1,062,771.The bonds were sold to yield 10% and pay interest semiannually on July 1 and January 1.Bobby's Building Corp.uses the effective interest method of amortization.The company's fiscal year ends on February 28.
Required:
1.Prepare the journal entry on July 1,2019.
2.Prepare the amortization table for the first two interest periods.
3.Prepare the journal entry on January 1,2020.
4.Prepare the adjusting entry needed on February 28,2020.
Round all amounts to the nearest dollar.Omit explanations for all journal entries.
1.
  2.
  3.
  4.

Quizplus · Accepted Answer

The Answer of On July 1,2019,Bobby's Building Corp.issued $1,000,000 of 11% bonds dated July 1,2019 for $1,062,771.The bonds were sold to yield 10% and pay interest semiannually on July 1 and January 1.Bobby's Building Corp.uses the effective interest method of amortization.The company's fiscal year ends on February 28.
Required:
1.Prepare the journal entry on July 1,2019.
2.Prepare the amortization table for the first two interest periods.
3.Prepare the journal entry on January 1,2020.
4.Prepare the adjusting entry needed on February 28,2020.
Round all amounts to the nearest dollar.Omit explanations for all journal entries.
1.
  2.
  3.
  4.