Brief Exercise 10-10Flounder Corp. issued 1,500 9%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2022enter an account title for the journal entry on January 1,2017 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1,2017 enter a debit amount enter a credit amount (b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditDec. 31, 2022enter an account title for the journal entry on December 31,2017 enter a debit amount enter a credit amount  enter an account title for the journal entry on December 31,2017 enter a debit amount enter a credit amount (c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditJan. 1, 2023enter an account title for the journal entry on January 1,2018 enter a debit amount enter a credit amount  enter an account title for the journal entry on January 1,2018 enter a debit amount enter a credit amount

Question
Asked Nov 11, 2019

Brief Exercise 10-10

Flounder Corp. issued 1,500 9%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2022
enter an account title for the journal entry on January 1,2017
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1,2017
 
enter a debit amount
 
enter a credit amount
 

(b) Prepare the adjusting journal entry on December 31, 2022, to record interest expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2022
enter an account title for the journal entry on December 31,2017
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on December 31,2017
 
enter a debit amount
 
enter a credit amount
 

(c) Prepare the journal entry on January 1, 2023, to record interest paid. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2023
enter an account title for the journal entry on January 1,2018
 
enter a debit amount
 
enter a credit amount
 
 
enter an account title for the journal entry on January 1,2018
 
enter a debit amount
 
enter a credit amount
 
check_circle

Expert Answer

Step 1

a)

 

Journalize the entry to record the sale of bonds:

Accounting Title and
Explanation
Debit (S)
Credit (S)
Date
January 1, 2022
Cash
$1,500,000
Bonds payable
$1,500,000
(To record the issue of bond)
help_outline

Image Transcriptionclose

Accounting Title and Explanation Debit (S) Credit (S) Date January 1, 2022 Cash $1,500,000 Bonds payable $1,500,000 (To record the issue of bond)

fullscreen
Step 2

b)

 

Journalize the adjusting entry to record the int...

Accounting Title and
Explanation
Debit (S) Credit (S)
Date
December 31, 2022 Interest expense
$135,000
Interest payable on bonds
(To record the interest expense)
$135,000
help_outline

Image Transcriptionclose

Accounting Title and Explanation Debit (S) Credit (S) Date December 31, 2022 Interest expense $135,000 Interest payable on bonds (To record the interest expense) $135,000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 22. Gage’s accounting records included the following information: Inventory, 01-01-15               ...

A: Freight Out is a transportation expense incurred to move the good out of the manufacturers factory o...

question_answer

Q: Beth uses the net invoice method to record sales on account.  Beth made sales of $40,000 with terms ...

A: Receivables: Receivables refer to an amount to be received in future. General classifications of rec...

question_answer

Q: The internal control procedures in Dayton Company result in the following provisions.Identify the pr...

A: Internal control: Internal control is a process which ensures continuous reliability of accomplishme...

question_answer

Q: Accounting principal 2  chapter-14 Q:- On April 1,2019 Cowell Company issued $3000000, 20 year year,...

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...

question_answer

Q: Terry Wade, the new controller of Sheridan Company, has reviewed the expected useful lives and salva...

A: Determine the revised annual depreciation on each asset in 2020.

question_answer

Q: Required information [The following information applies to the questions displayed below] BMX Compan...

A: Click to see the answer

question_answer

Q: Mimasca Inc. manufactures various holiday masks. Each mask is shaped from a piece of rubber in the m...

A: Click to see the answer

question_answer

Q: 1. The $1,779,000 note receivable is dated May 1, 2016, bears interest at 8%, and represents the bal...

A: The principal portion and interest on notes need to be accounted seperately. Interest on notes recei...

question_answer

Q: Q. question 6

A: Additional paid-in capital: Additional paid-in capital is the payment of amount made by shareholders...