Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done

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Chapter13: Long-term Liabilities
Section: Chapter Questions
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Answer all questions. Ch.9-2

Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1
Read the requirement
a. Issuance of the bonds payable at par on July 1, 2018
Journal Entry
Date
Accounts and Explanations
Debit
Credit
Requirement
2018
Cash
100,000
Jul
Bonds Pavable
100,000
Journalize the following transactions for Davis. Include an explanation for each
entry
a. Issuance of the bonds payable at par on July 1, 2018
b. Accrual of interest expense on December 31, 2018
c. Payment of cash interest on January 1, 2019
d. Payment of the bonds payable at maturity (give the date)
(Record debits first, then credits. Select the explanation on the last line of the
To issue bonds at par
b. Accrual of interest expense on December 31, 2018
Journal Entry
Debit
Credit
Date
2018
Dec 31
Accounts and Explanations
journal entry table.)
P
rint
Done
Transcribed Image Text:Davis Corp. issued 8% five-year bonds payable with a face amount of $100,000 when the market interest rate was 8%. Davis's fiscal year-end on December 31 . The bonds pay interest on January 1 and July 1 Read the requirement a. Issuance of the bonds payable at par on July 1, 2018 Journal Entry Date Accounts and Explanations Debit Credit Requirement 2018 Cash 100,000 Jul Bonds Pavable 100,000 Journalize the following transactions for Davis. Include an explanation for each entry a. Issuance of the bonds payable at par on July 1, 2018 b. Accrual of interest expense on December 31, 2018 c. Payment of cash interest on January 1, 2019 d. Payment of the bonds payable at maturity (give the date) (Record debits first, then credits. Select the explanation on the last line of the To issue bonds at par b. Accrual of interest expense on December 31, 2018 Journal Entry Debit Credit Date 2018 Dec 31 Accounts and Explanations journal entry table.) P rint Done
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