Journalize the entry to record the issuance of the bonds.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal...
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Question
On the first day of the fiscal year, a company issues a $950,000, 10%, five-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174.
Required: | |
CHART OF ACCOUNTSGeneral Ledger
ASSETS | |
110 | Cash |
111 | Petty Cash |
112 | |
113 | Allowance for Doubtful Accounts |
114 | Notes Receivable |
115 | Interest Receivable |
121 | Merchandise Inventory |
122 | Supplies |
131 | Prepaid Insurance |
140 | Land |
151 | Building |
152 | |
153 | Equipment |
154 | Accumulated Depreciation-Equipment |
LIABILITIES | |
210 | Accounts Payable |
221 | Salaries Payable |
231 | Sales Tax Payable |
241 | Notes Payable |
242 | Interest Payable |
251 | Bonds Payable |
252 | Discount on Bonds Payable |
253 | Premium on Bonds Payable |
EQUITY | |
310 | Owner, Capital |
311 | Owner, Drawing |
312 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
611 | Gain on Redemption of Bonds |
EXPENSES | |
510 | Cost of Merchandise Sold |
511 | |
512 | Credit Card Expense |
513 | Cash Short and Over |
521 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Repairs Expense |
534 | Rent Expense |
535 | Insurance Expense |
536 | Supplies Expense |
551 | Depreciation Expense-Building |
552 | Depreciation Expense-Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
711 |
Loss on Redemption of Bonds
|
Journalize the entry to record the issuance of the bonds on July 1. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
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1
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2
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3
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