1.) On January 1, 2024,Technicians Credit Union (TCU) issued 7%, 20-year bonds payable with face value of $1,100,000.These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106.Journalize the following bond transactions:More infoa.Issuance of the bonds on January 1, 2024.b.Payment of interest and amortization on June 30, 2024.c.Payment of interest and amortization on December 31, 2024.d.Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded.(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)Part 1 a. Journalize the issuance of the bonds on January 1, 2024.DateAccounts and ExplanationDebitCredit2024 Jan. 1Cash Premium on Bonds Payable Bonds Payable Issued bonds at a premium.

The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.…

Answered: On January 1, 2024,Technicians Credit…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July...

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1.) On January 1, 2024,Technicians Credit Union (TCU) issued 7%, 20-year bonds payable with face value of $1,100,000.

These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106.

Journalize the following bond transactions:

More info

a.	Issuance of the bonds on January 1, 2024.
b.	Payment of interest and amortization on June 30, 2024.
c.	Payment of interest and amortization on December 31, 2024.
d.	Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded.

(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)

Part 1 a. Journalize the issuance of the bonds on January 1, 2024.

Date	Accounts and Explanation	Debit	Credit
2024
Jan. 1	Cash
	Premium on Bonds Payable
	Bonds Payable

	Issued bonds at a premium.

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