Eastern Gatew × × I test 3 chip 10,11, 14,131, wlpr x ? ? c oli Secure l newconn

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Eastern Gatew × × I test 3 chip 10,11, 14,131, wlpr x ? ? c oli Secure l newconnect.mheducati connect.html test 3 chp 10,11, 14,1317 Saved Help Save &Exit; Submit Sylvestor Company issues 13% five-year bonds, on December 31, 2016, with a par value of $210,000 and semiannual interest 9 (e) 12/31/2016 (1) 6/38/2817 (2) 12/31/2817 5 7,38e 6,578 5,848 $ 282,70e 283,438 284,168 Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2016, (b) the first interest payment on June 30, 2017, and (c) the second interest payment on December 31, 2017 View transaction list Journal entry worksheet Record the issuance of the bonds Note: Enter debits before credits. 845 PM /2/2018 Type here to search

Explanation / Answer

Solution:

Journal Entries - Syivestor Company Date Particulars Debit Credit 31-Dec-16 Cash Dr $202,700.00 Discount on issue of bond Dr $7,300.00         To Bond Payable $210,000.00 (To record issue of bond at discount) 30-Jun-17 Interest Expense Dr $14,380.00         To Cash ($210,000 * 13%*6/12) $13,650.00         To Discount on issue of bond ($7,300 - $6,570) $730.00 (To record semiannual interest payment and discount amortization) 31-Dec-17 Interest Expense Dr $14,380.00         To Cash ($210,000 * 13%*6/12) $13,650.00         To Discount on issue of bond ($6,570 - $5,840) $730.00 (To record semiannual interest payment and discount amortization)

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