The Square Foot Grill, Inc., issued $200,000 of 10-year, 6 percent bonds on July
ID: 2582757 • Letter: T
Question
The Square Foot Grill, Inc., issued $200,000 of 10-year, 6 percent bonds on July 1, 2016, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization.
9.
value:
0.50 points
Required information
The Square Foot Grill, Inc., issued $200,000 of 10-year, 6 percent bonds on July 1, 2016, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization.
(The following infomation applies to the questions aisplayed below. The Square Foot Grill, Inc., issued $200,000 of 10 year, 6 percent bonds on July 1, 2016, at 102. Interest is payable in cash semiannually on June 30 and December 31. The straight-line method is used for amortization Required information 0.50 points Required a. Prepare the journal entries to record issuing the bonds and any necessary journal entries for 2016 and 2017. Post the journal entries to T-accounts. Prepare any necessary closing entries for 2016. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 6 Record the issue of bonds payable with premium. Note: Enter debits before credits Date General Journal Debit Credit Jul 01, 2016 Record entry Clear entry View general journalExplanation / Answer
01-07-2016 Cash 204000 (200000*102%) Bonds payable 200000 Premium on bonds payable 4000 31-12-2016 Interest expense 5800 Premium on bonds payable 200 (4000/10*6/12) Cash 6000 (200000*6%*6/12) 31-12-2016 Income summary 5800 Interest expense 5800 30-Jun-17 Interest expense 5800 Premium on bonds payable 200 (4000/10*6/12) Cash 6000 (200000*6%*6/12) 31-Dec-17 Interest expense 5800 Premium on bonds payable 200 (4000/10*6/12) Cash 6000 (200000*6%*6/12) 31-12-2017 Income summary 11600 Interest expense 11600
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