4
16.66
points
Exercise 14-6 (Algo) Bonds; issuance; effective interest [LO14-2]
The Gonzalez Group issued $850.000 of 13% bonds on June 30, 2024, for $913,945.
• The bonds were dated on June 30 and mature on June 30, 2044 (20 years).
• The market yield for bonds of similar risk and maturity is 12%
• Interest is paid semiannually on December 31 and June 30
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Required:
1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024
and interest on June 30, 2025 (at the effective rate)
Print
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
References
View transaction list
1 Record the issuance of the bond on June 30, 2024.
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2 Record the interest on December 31, 2024 (at the
effective rate).
3 Record the interest on June 30, 2025 (at the effective
rate).
Note: -- journal entry has been entered