Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance of the bond on January 1, 2018. 2. Journalize the payment of semiannual interest on the bond on June 30, 2018. Include the amortization as part of the interest payment. 3. Journalize the repayment of the bond afer the final interest payment was made.
Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance of the bond on January 1, 2018. 2. Journalize the payment of semiannual interest on the bond on June 30, 2018. Include the amortization as part of the interest payment. 3. Journalize the repayment of the bond afer the final interest payment was made.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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Question
Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018.
1. Journalize the issuance of the bond on January 1, 2018. |
2. Journalize the payment of semiannual interest on the bond on June 30, 2018. |
Include the amortization as part of the interest payment. |
3. Journalize the repayment of the bond afer the final interest payment was made. |
GENERAL JOURNAL | |||||||
POST | |||||||
Date | Account/Description | REF. | Debit | Credit | |||
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Step 1
Bonds are the debts of an issuing company that is repayable after a specific period of time, it may be redeemed at par or at a premium.
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