Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is payable semiannually on June 30 and December 31. Gridley Company uses the straight-line method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and the discount amortization on June 30, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30, 2015 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2015 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit
Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is payable semiannually on June 30 and December 31. Gridley Company uses the straight-line method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and the discount amortization on June 30, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30, 2015 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the payment of interest and the discount amortization on December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2015 SHOW LIST OF ACCOUNTS Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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