Brief Exercise 14-3 1, 2022, with interest payable each July 1 and The Vaughn Co

Question

Brief Exercise 14-3 1, 2022, with interest payable each July 1 and The Vaughn Company issued $330,000 of 7% bonds on January 1 2017. The bonds are due Ja ua at 96 anuary 1 The bonds were issued Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Vaughn Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) No. Date Account Titles and Explanation Debit Credit (a) January 1, 2017

Explanation / Answer

Jan 1 2017 Cash                   316,800 Discount on Bonds Payable                      13,200        Bonds Payable                330,000 Jul 1 2017 Interest Expense                      12,870    Cash                   11,550    Discount on Bonds Payable                     1,320 Dec 31 2017 Interest Expense                      12,870    Interest Payable                   11,550    Discount on Bonds Payable                     1,320

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