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Bond entries

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On September 1 2007, Chardin Corporation issued $300,000, 8%, 10 year bonds at face value. Interest is payable annually on Sept. 1. Chardin year end is December 31.

Prepare journal entries to record the following events.
a) The issuance of the bonds
b) The accrual of interest on December 31, 2007
c) The payment of interest on September 1, 2008

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Solution Summary

The solution explains the entries to be made for bond issuance, accrual of interest and payment of interest

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Prepare journal entries to record the following events.
a) The issuance of the bonds

The amount of cash received in $300,000 since the bonds are issued ar face value. The entry is
Cash Dr ...

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