S Kms rlAcounting e CALCULATOR PRINTER VERSION BACK Brief Exercise 10-16 Cull be

Question

S Kms rlAcounting e CALCULATOR PRINTER VERSION BACK Brief Exercise 10-16 Cull ber amortize bond discount. Company issues $2.30 million, 10-year, 6% bonds at 98, with interest payable on December 31, rhe traight-lee method is used to Prepare the journal entry to record the sale of these bonds on January 1, 20 17. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Jan. 1 Debit Credit Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2017, assuming no previous accrusal of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Tities and Explenation Dec. 31 Credit Question Attempts: 0 of s used SAVE FOR LATER SUBMET ANSWER 5 6 8 9 delete 0

Explanation / Answer

Journal entry :

D

Date accounts & explanation debit credit Jan 1 Cash 2.254 Discount on bonds payable 0.046      Bonds payable 2.30 (To record bonds issue) Dec 31 Interest expense 0.1426    Discount on bonds payable (0.046/10) 0.0046     Cash (2.3*6%) 0.138 (To record interest)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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