Dailey Company issued $502,500, 7%, 15-year bonds on December 31, 2013, for $482

Question

Dailey Company issued $502,500, 7%, 15-year bonds on December 31, 2013, for $482,400. Interest is payable annually on December 31. Dailey uses the straight-line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) The issuance of the bonds. The payment of interest and the discount amortization on December 31, 2014. The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Explanation / Answer

no. Date Account Title and explation Debit Credit A Dec 31 2013 Cash A/C dr.         482,400 Discount on Bonds payable           20,100 To Bonds payable      502,500 B Dec 31 2014 Interest Expenses A/C dr.           36,515 To Doscount on Bonds Payable          1,340 To Cash        35,175 C Dec 31 2028 Bonds payable         502,500 To Cash A/C      502,500

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.