Exercise 10-13 Romine Company issued $559,900 of 8%, 15-year bonds on January 1,
ID: 2444937 • Letter: E
Question
Exercise 10-13
Romine Company issued $559,900 of 8%, 15-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1.
Warning
Don't show me this message again for the assignment
Ok
Cancel
Date
Account Titles and Explanation
Debit
Credit
Warning
Don't show me this message again for the assignment
Ok
Cancel
Show List of Accounts
Link to Text
Date
Account Titles and Explanation
Debit
Credit
Warning
Don't show me this message again for the assignment
Ok
Cancel
Show List of Accounts
Link to Text
Date
Account Titles and Explanation
Debit
Credit
Warning
Don't show me this message again for the assignment
Ok
Cancel
Show List of Accounts
Link to Text
Date
Account Titles and Explanation
Debit
Credit
Warning
Don't show me this message again for the assignment
Ok
Cancel
Exercise 10-13
Romine Company issued $559,900 of 8%, 15-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1.
Warning
Don't show me this message again for the assignment
Ok
Cancel
Explanation / Answer
Journal entry on bond issue Date Account Name Debit Credit 01 January 2014 Cash $ 5,59,900 Bonds -8% payable $ 5,59,900 (Issue of Bonds) Journal entry on interest payable Date Account Name Debit Credit 31 December 2014 Interest Expense $ 44,792 Interest payable $ 44,792 (Being interest payable ) Journal entry on interest payment Date Account Name Debit Credit 01 January 2015 Interest payable $ 44,792 Cash/Bank $ 44,792 (Being interest paid ) Journal entry on redumption of bond Date Account Name Debit Credit 01 January 2029 Bonds -8% payable $ 5,59,900 Cash $ 5,59,900 (redumption of Bonds)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.