Essay
On January 1, 2019, Kitchen Concepts, Inc. issued five-year, $10,000,000, 9 percent notes at 98 ($9,800,000). The discount at the time of issuance was $200,000. Interest is paid semiannually on June 30, and December 31.
Required:
A)Provide the journal entry to record the issuance of the bonds on January 1, 2019.
B)What journal entry would have to be recorded each June 30 and December 31 assuming the use of straight line amortization?
C)Give the journal entry to record the repayment of the loan principal on December 31, 2023.
Correct Answer:
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A) The journal entry to record the issua...View Answer
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Correct Answer:
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