On January 1, 2016, Dave Unlimited issues 10%, 20-year bonds payable with a face
ID: 2454101 • Letter: O
Question
On January 1, 2016, Dave Unlimited issues 10%, 20-year bonds payable with a face value of $180,000. The bonds are issued at 102 and pay interest on June 30 and December 31.
1. Journalize the issuance of the bonds on January 1, 2016.
2. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016.
3. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2016.
4. Journalize the retirement of the bond at maturity. (Give the date)
Question 24 from Horngren's Financial and Managerial Accounting 5th Edition I need to see how it is worked step by step.
Explanation / Answer
1. January 1, 2016
Bank A/c Dr. $183,600
To 10% Bond A/c $180,000
To Premium on bond payable A/c $3,600
2. June 30, 2016
Interest payable on bond A/c Dr. $9,000
Premium on bond A/c Dr. $90
To Bank A/c $9,090
3. December 31, 2016
Interest payable on bond A/c Dr. $9,000
Premium on bond A/c Dr. $90
To Bank A/c $9,090
4. Retirement of Bond
Bond payable A/c Dr. $180,000
To Bank A/c $180,000
4.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.