Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000 Sale price of bonds: 99 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on September 30 and March 31 Required: Prepare the following general journal entries. a. The issuance of the bonds on April 1, 20-A. b. The interest payment and premium amortization for first six months. c. The redemption of $50,000 worth of bonds on April 1, 20-E, at 102. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 a. Apr. 1 1 2 2 3 3 4 4 5 b. Sept. 30 - Select - - Select - 5 6 - Select - - Select - 6 7 - Select - - Select - 7 8 8 9 c. Apr. 1 - Select - - Select - 9 10 - Select - - Select - 10 11 - Select - - Select - 11 12 - Select - - Select - 12
Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000 Sale price of bonds: 99 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on September 30 and March 31 Required: Prepare the following general journal entries. a. The issuance of the bonds on April 1, 20-A. b. The interest payment and premium amortization for first six months. c. The redemption of $50,000 worth of bonds on April 1, 20-E, at 102. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 a. Apr. 1 1 2 2 3 3 4 4 5 b. Sept. 30 - Select - - Select - 5 6 - Select - - Select - 6 7 - Select - - Select - 7 8 8 9 c. Apr. 1 - Select - - Select - 9 10 - Select - - Select - 10 11 - Select - - Select - 11 12 - Select - - Select - 12
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 15MCQ
Related questions
Question
Gia Company had the following bond issue:
| Date of issue/sale: | April 1, 20-A |
| Face value: | $200,000 |
| Sale price of bonds: | 99 |
| Life of bonds: | 10 years |
| Stated rate: | 6% a year payable semiannually on September 30 and March 31 |
Required:
Prepare the following general
a. The issuance of the bonds on April 1, 20-A.
b. The interest payment and premium amortization for first six months.
c. The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.
If an amount box does not require an entry, leave it blank.
Page: 1
| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | a. Apr. 1 |
|
1 | |||
| 2 |
|
2 | ||||
| 3 |
|
3 | ||||
| 4 | 4 | |||||
| 5 | b. Sept. 30 |
|
- Select - | - Select - | 5 | |
| 6 |
|
- Select - | - Select - | 6 | ||
| 7 |
|
- Select - | - Select - | 7 | ||
| 8 | 8 | |||||
| 9 | c. Apr. 1 |
|
- Select - | - Select - | 9 | |
| 10 |
|
- Select - | - Select - | 10 | ||
| 11 |
|
- Select - | - Select - | 11 | ||
| 12 |
|
- Select - | - Select - | 12 |
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