Homework Help is Here – Start Your Trial Now!
Business
Accounting
Bonds Payable Journal Entries; Straight-Line Interest Amortization On December 31, Green Company issued $600,000 of 15-year, ten percent bonds payable for $517,411, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31.  Round answers to the nearest dollar.   General Journal   Date Description Debit Credit (a) 12/31/Y1 Cash Answer   Answer       Answer   Answer   Answer       Answer   Answer   Answer       To record issuance of bonds at a discount.     (b) 06/30/Y2 Answer   Answer   Answer       Answer   Answer   Answer       Cash Answer   Answer       To record semiannual payment and discount amortization.     (c) 12/31/Y2 Answer   Answer   Answer       Answer   Answer   Answer       Cash Answer   Answer       To record semiannual payment and discount amortization.

Bonds Payable Journal Entries; Straight-Line Interest Amortization On December 31, Green Company issued $600,000 of 15-year, ten percent bonds payable for $517,411, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31.  Round answers to the nearest dollar.   General Journal   Date Description Debit Credit (a) 12/31/Y1 Cash Answer   Answer       Answer   Answer   Answer       Answer   Answer   Answer       To record issuance of bonds at a discount.     (b) 06/30/Y2 Answer   Answer   Answer       Answer   Answer   Answer       Cash Answer   Answer       To record semiannual payment and discount amortization.     (c) 12/31/Y2 Answer   Answer   Answer       Answer   Answer   Answer       Cash Answer   Answer       To record semiannual payment and discount amortization.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 70E
See similar textbooks
icon
Related questions
Question

Bonds Payable Journal Entries; Straight-Line Interest Amortization

On December 31, Green Company issued $600,000 of 15-year, ten percent bonds payable for $517,411, yielding an effective interest rate of 12 percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31. 

Round answers to the nearest dollar.

 

General Journal
  Date Description Debit Credit
(a) 12/31/Y1 Cash Answer
 
 Answer
 
    Answer
 
 Answer
 
 Answer
 
    Answer
 
 Answer
 
 Answer
 
    To record issuance of bonds at a discount.    
(b) 06/30/Y2 Answer
 
 Answer
 
 Answer
 
    Answer
 
 Answer
 
 Answer
 
    Cash Answer
 
 Answer
 
    To record semiannual payment and discount amortization.    
(c) 12/31/Y2 Answer
 
 Answer
 
 Answer
 
    Answer
 
 Answer
 
 Answer
 
    Cash Answer
 
 Answer
 
    To record semiannual payment and discount amortization.    
Expert Solution
steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS