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Indigo Corporation issued $519,600 of 7% bonds on November 1, 2025, for $558,684. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Indigo uses the effective-interest method with an effective rate of 6%. Click here to view factor tables. Prepare Indigo's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, Interest Expense 2025 Premium on Bonds Payable Interest Payable Debit 5,587 30,785 Credit 36.372

Indigo Corporation issued $519,600 of 7% bonds on November 1, 2025, for $558,684. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Indigo uses the effective-interest method with an effective rate of 6%. Click here to view factor tables. Prepare Indigo's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, Interest Expense 2025 Premium on Bonds Payable Interest Payable Debit 5,587 30,785 Credit 36.372

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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Indigo Corporation issued $519,600 of 7% bonds on November 1, 2025, for $558,684. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Indigo uses the effective-interest method with an effective rate of 6%. Click here to view factor tables. Prepare Indigo's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, Interest Expense 2025 Premium on Bonds Payable Interest Payable Debit 5,587 30,785 Credit 36.372
Transcribed Image Text:Indigo Corporation issued $519,600 of 7% bonds on November 1, 2025, for $558,684. The bonds were dated November 1, 2025, and mature in 10 years, with interest payable each May 1 and November 1. Indigo uses the effective-interest method with an effective rate of 6%. Click here to view factor tables. Prepare Indigo's December 31, 2025, adjusting entry. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation December 31, Interest Expense 2025 Premium on Bonds Payable Interest Payable Debit 5,587 30,785 Credit 36.372
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