10-9 to 10-10 BE10-9 Price Company issues $400,000, 20-year, 7% bonds at 101, Pr

Question

10-9 to 10-10

BE10-9 Price Company issues $400,000, 20-year, 7% bonds at 101, Prepare the journal entry to record the sale of these bonds on June 1, 2019 BE10-10 Meera Corporation issued 4,000, 8%, 5-year, $1,000 bonds dated January 1, 2019, at 100. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2019. (b) Prepare the adjusting journal entry on December 31, 2019, to record interest expense. (c) Prepare the journal entry on January 1, 2020, to record interest paid.

Explanation / Answer

10-9

Price Company

Journal

10-10

Meera Corporation

Journal

Date Account Debit Credit June 1, 2019 Cash 404,000 Bonds payable 400,000 Bond premium 4,000

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