Use the following information for Questions #31 and #32. Red…
Use the following information for Questions #31 and #32. Red & White, Inc. issued $400,000, 7%, 5-year bonds on January 1, 2025, at $384,027.88. Interest is payable annually on January 1. Red & White, Inc. uses the effective-interest method of amortization, has a calendar year end, and the bonds were issued for an effective interest rate of 8%. Record the journal entry on January 1st, 2025 for the issuance of the bonds. Answer should be expressed as : DR (ACCOUNT NAME) $X,XXX CR (ACCOUNT NAME) $X,XXX No dates or explanations are needed.