need help Brief Exercise 14-3 interest payable each July 1 and January 1The bond
ID: 2595004 • Letter: N
Question
need help
Brief Exercise 14-3 interest payable each July 1 and January 1The bonds were issued at 99. Prepare the journal entries for (a) January 1, (b) July 1, and (o) December 31. Assume The Sunland Company records The Sunland Company issued $220,000 of 89% bonds on January 1, 2017. The bonds are due January 1, 2022, with straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to o decimal places, e.g. 38,548.)Explanation / Answer
Date Particulars Debit Credit Working Notes: 01-Jan Bank Account Dr. 217800 8% Bonds Face Value 220000 Discount on issue of Bonds Account Dr. 2200 Issued @ 99/- 217800 To 8% Bonds Payable Account 220000 Discount on issue of Bonds 2200 (Being Bonds issued at discount) Bonds Life in years 5 01-Jul Interest Expnses Account Dr. 8800 Annual Amortisation 440 To Bank Account 8800 Semiannual Amortisation 220 (Being interest paid on Bonds) 01-Jul Discount on issue of Bonds Ex Account Dr. 220 Annual Interest 17600 To Discount on issue of Bonds Account 220 Semiannual Interest 8800 (Being Discount on issue redeemed) 31-Dec Interest Expnses Account Dr. 8800 To Bank Account 8800 (Being interest paid on Bonds) 31-Dec Discount on issue of Bonds Ex Account Dr. 220 To Discount on issue of Bonds Account 220 (Being Discount on issue redeemed) 31-Dec Profit & Loss Account Dr. 17820 To Interest Expense Account 17600 To Discount on issue of Bonds Ex Account 220 (Being Expenses during the year tf to PL)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.