Sylvestor Company issues 10%, five-year bonds, on December 31, 2016, with a par

Question

Sylvestor Company issues 10%, five-year bonds, on December 31, 2016, with a par value of $100,000 and semiannual interest payments.

     
Use the above bond amortization table and prepare journal entries to record (a) the issuance of bonds on December 31, 2016; (b) the first interest payment on June 30, 2017; and (c) the second interest payment on December 31, 2017.
  

record the issuance of bonds

Record the interest payment and amortization on June 30, 2017.

Record the interest payment and amortization on December 31, 2017.

Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2016 $ 7,360 $ 92,640 (1) 6/30/2017 6,624 93,376 (2) 12/31/2017 5,888 94,112

Explanation / Answer

Dec-31-16 Cash 92640 Discount on bonds payable 7360       Bonds payable 100000 30-Jun-17 Interest expense 5736      Discount on bonds payable 736 =7360-6624      Cash 5000 =100000*10%/2 31-Dec-17 Interest expense 5736      Discount on bonds payable 736 =6624-5888      Cash 5000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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