On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The bonds are issued at 96 and pay interest on June 30th and December 31st. Assume bonds payable are amortized using the straight line method

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The bonds are issued at 96 and pay interest on June 30th and December 31st. Assume bonds payable are amortized using the straight line method

100.j
bonds are issued at 96 an
Requirements
1. Journalize the issuance of the bonds on June 30.
2. Journalize the semiannual interest payment and amortization of the bond discount on December 31.
Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last
Date
Accounts and Explanation
Debit
Credit
Jun. 30
Requirement 2. Journalize the semiannual interest payment and amortization of the bond discount on December 31. (Record debits fir
Date
Accounts and Explanation
Debit
Credit
Dec. 31
3
hp
O
Transcribed Image Text:100.j bonds are issued at 96 an Requirements 1. Journalize the issuance of the bonds on June 30. 2. Journalize the semiannual interest payment and amortization of the bond discount on December 31. Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last Date Accounts and Explanation Debit Credit Jun. 30 Requirement 2. Journalize the semiannual interest payment and amortization of the bond discount on December 31. (Record debits fir Date Accounts and Explanation Debit Credit Dec. 31 3 hp O
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