On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year (for the issuer’s books): (a) Issuance of the bonds. (b) First annual interest payment. (c) Amortization of bond premium for the year, using the straight-line method of amortization. (for each Journal Entry, omit the 4th journalizing step of providing a brief explanation) JOURNAL Date Post. DR CR (a) (b) (c)
On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year (for the issuer’s books): (a) Issuance of the bonds. (b) First annual interest payment. (c) Amortization of bond premium for the year, using the straight-line method of amortization. (for each Journal Entry, omit the 4th journalizing step of providing a brief explanation) JOURNAL Date Post. DR CR (a) (b) (c)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 15MCQ
Related questions
Question
On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year (for the issuer’s books):
(a) |
Issuance of the bonds. |
(b) |
First annual interest payment. |
(c) |
Amortization of bond premium for the year, using the straight-line method of amortization. |
(for each
JOURNAL
Date Post. DR CR |
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