Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount.Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a)   The issuance of the bonds. (b)   The accrual of interest and the premium amortization on December 31, 2017. (c)   The payment of interest on January 1, 2018. (d)   The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.   No. Date Account Titles and Explanation Debit Credit (a) Jan. 1, 2017 enter an account title to record the issuance of the bonds on January 1, 2017   enter a debit amount   enter a credit amount       enter an account title to record the issuance of the bonds on January 1, 2017   enter a debit amount   enter a credit amount       enter an account title to record the issuance of the bonds on January 1, 2017   enter a debit amount   enter a credit amount   (b) Dec. 31, 2017 enter an account title to record the accrual of interest and the premium amortization on December 31, 2017   enter a debit amount   enter a credit amount       enter an account title to record the accrual of interest and the premium amortization on December 31, 2017   enter a debit amount   enter a credit amount       enter an account title to record the accrual of interest and the premium amortization on December 31, 2017   enter a debit amount   enter a credit amount   (c) Jan. 1, 2018 enter an account title to record the payment of interest on January 1, 2018   enter a debit amount   enter a credit amount       enter an account title to record the payment of interest on January 1, 2018   enter a debit amount   enter a credit amount   (d) Jan. 1, 2047 enter an account title to record the redemption of the bonds at maturity on January 1, 2047   enter a debit amount   enter a credit amount       enter an account title to record the redemption of the bonds at maturity on January 1, 2047

Question

Ivanhoe Company issued $459,000, 8%, 30-year bonds on January 1, 2017, at 103. Interest is payable annually on January 1. Ivanhoe uses straight-line amortization for bond premium or discount.

Prepare the journal entries to record the following events. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)   The issuance of the bonds.
(b)   The accrual of interest and the premium amortization on December 31, 2017.
(c)   The payment of interest on January 1, 2018.
(d)   The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

 

No.
Date
Account Titles and Explanation
Debit
Credit
(a)
Jan. 1, 2017
enter an account title to record the issuance of the bonds on January 1, 2017
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the issuance of the bonds on January 1, 2017
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the issuance of the bonds on January 1, 2017
 
enter a debit amount
 
enter a credit amount
 
(b)
Dec. 31, 2017
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the accrual of interest and the premium amortization on December 31, 2017
 
enter a debit amount
 
enter a credit amount
 
(c)
Jan. 1, 2018
enter an account title to record the payment of interest on January 1, 2018
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the payment of interest on January 1, 2018
 
enter a debit amount
 
enter a credit amount
 
(d)
Jan. 1, 2047
enter an account title to record the redemption of the bonds at maturity on January 1, 2047
 
enter a debit amount
 
enter a credit amount
 
   
enter an account title to record the redemption of the bonds at maturity on January 1, 2047
 

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