Question 1 Kershaw Electric sold $4,330,000, 13%, 10-year bonds on January 1, 20

Question

Question 1 Kershaw Electric sold $4,330,000, 13%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and paid interest on January 1. The bonds were sold at 97. Prepare the journal entry to record the issuance of the bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXTLINK TO TEXT At December 31, 2017, $8,000 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2017. (Enter account name only and do not provide descriptive information.) Kershaw Electric Balance Sheet (Partial) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT

Explanation / Answer

1) Journal entry :

Balance sheet :

Journal entry :

Date accounts & explanation debit credit Jan 1, 2017 Cash (4330000*97/100) 4200100 Discount on bonds payable 129900 Bonds payable 4330000

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