Accounts Payable Accounts Receivable Accumulated Depreciation-Equipment Accrued

Question

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Accrued Pension Liability
Bonds Payable
Buildings
Cash
Common Stock
Cost of Goods Sold
Current Portion of Long-Term Debt
Depreciation Expense
Discount on Bonds Payable
Dividends
Equipment
Federal Income Taxes Payable
Federal Unemployment Taxes Payable
FICA Taxes Payable
Gain on Bond Redemption
Income Tax Expense
Income Taxes Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Land
Loss on Bond Redemption
Mortgage Payable
No Entry
Notes Payable
Other Operating Expenses
Payroll Tax Expense
Premium on Bonds Payable
Prepaid Insurance
Property Taxes Payable
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Sales Taxes Payable
Service Revenue
Share Premium-Conversion Equity
State Income Taxes Payable
State Unemployment Taxes Payable
Subscription Revenue
Ticket Revenue
Unearned Rent Revenue
Unearned Sales Revenue
Unearned Service Revenue
Unearned Subscription Revenue
Unearned Ticket Revenue
Union Dues Payable
Warranty Liability

Exercise 10-21 Sheridan Company issued $475,500, 9%, 15-year bonds on December 31, 2016, for $456,480. Interest is payable annually on December 31. Sheridan uses the straight-line method to amortize bond premium or discount. Prepare the jounal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the discount amortization on December 31, 2017 (c)The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. No. Dat Acount Titles and Explanation (a) Dec. 31, 2016 Debit Credit (b) Dec. 31, 2017 (c) Dec. 31, 2031

Explanation / Answer

Dec-31-16 Cash 456480 Discount on Bonds payable 19020        Bonds payable 475500 Dec-31-17 Interest expense 44063        Discount on Bonds payable 1268 =19020/15         Cash 42795 =475500*9% Dec-31-31 Bonds payable 475500         Cash 475500

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