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Exercise 10-13 Romine Company issued $551,200 of 10%, 10-year bonds on January 1

ID: 2456709 • Letter: E

Question

Exercise 10-13

Romine Company issued $551,200 of 10%, 10-year bonds on January 1, 2014, at face value. Interest is payable annually on January 1.

Prepare the journal entries to record the issuance of the bonds.

Prepare the journal entries to record the accrual of interest on December 31, 2014.

Prepare the journal entries to record the payment of interest on January 1, 2015.

Prepare the journal entries to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Date Account Titles and Explanation Debit Credit Jan 1. 2014

Explanation / Answer

Exercise 10-13 Romine Company issued $551,200 of 10%, 10-year bonds on January 1