My Chase is devoted to tracking the performance of amateur athletes. The company

Question

My Chase is devoted to tracking the performance of amateur athletes. The company issued $1,000,000 face amount of 9% bonds. The bonds were dated January 1, 20X4, and pay interest on June 30 and December 31 of each year. The initial bond offering was delayed until March 1, 20X4, and the issue price was 100 plus accrued interest.
(a) Prepare the journal entry to record the bond issue on March 1, 20X4.
(b) Prepare the journal entry that My Chase would record on June 30, 20X4.
(c) Prepare the journal entry that My Chase would record on December 31, 20X4.

(a)(b)(c)
GENERAL JOURNAL      
Date Accounts Debit Credit
1-Mar




30-Jun




31-Dec

Explanation / Answer

JOURNAL Date Account Head & Description Debit Amount Credit Amount Mar 1, 20X4 Cash ($1000000+$15000) 1015000 Interest payable ($1000000*9%*2/12) 15000 Bonds payable 1000000 (to record the issue of bonds) Jun 30, 20X4 Interest expenses ($1000000*9%*4/12) 30000 Interest payable 15000 Cash 45000 (to record the payment of interest for the 1st half) Dec 31, 20X4 Interest payable ($1000000*9%*6/12) 45000 Cash 45000 (to record the payment of interest for the 1st half)

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

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