Vernon Corp. issued 9.5% fifteen-year bonds payable with a face amount of $40,000 when the market interest rate was 9.5%

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Vernon Corp Issued 9 5 Fifteen Year Bonds Payable With A Face Amount Of 40 000 When The Market Interest Rate Was 9 5 1 (37.83 KiB) Viewed 32 times

Vernon Corp. issued 9.5% fifteen-year bonds payable with a face amount of $40,000 when the market interest rate was 9.5%. Vernon's fiscal year-end on December 31. The bonds pay interest on January 1 and July 1. Read the requirement. a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Accounts and Explanations Date 2018 Jul 1 b. Accrual of interest expense on December 31, 2018 Journal Entry Accounts and Explanations Date 2018 Dec Jan 31 c. Payment of cash interest on January 1, 2019 Date 2019 1 d. Payment of the bonds payable at maturity (give the date) Journal Entry Accounts and Explanations Date Journal Entry Accounts and Explanations 08 Debit Debit Debit Debit Credit Credit Credit Credit Requirement Journalize the following transactions for Vernon. Include an explanation for each entry. a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done - X