Chapter 14 Graded Exerc nes heducation com %2i paamweb %2 F index.htm %25%2Fregi

Question

Chapter 14 Graded Exerc nes heducation com %2i paamweb %2 F index.htm %25%2Fregistratio, newconnect.m heducation.com/now/connect.htmTreturnUri-h.tps%3 Check my work mode: This shows what is correct or incorrect for the work you have completed so fer. It doe On February 1, 2018, Strauss-Lombardi issued g% bonds, dated February 1, with a face amount of S860000 The bonds sold for $786 220 and mature on January 31, 2033(20 years). The market yield for bonds of sm lar risk and maturity was 10% interest is paid semiannualy on July 31 and January 31 Strauss-Lombardi's fiscal year ends December 31 Required: 1. to 4. Prepare the journal entry to record their issuance by Strauss-Lombardi on February 1, 2018, interest on July 31, 2018 (at the effective rate), adjusting entry to accrue interest on December 31, 2018 and interest on January 31, 2019. (Do not round your intermediate calculations and round your final answers to nearest whole doller. If no entry is required for a trensaction/event select "No journal entry required" in the first account field.) February 01 796,220 73,780 Discount on bonds payable Bonds payable 860,000 2 July 31,2018 Interest expense 39.311 611 0 38 700 Cash Discount on bonds payable Interest expense 32,785 Intenest paryable Discount on bonds payable 2,785 Interest expeme Interest payable 6.567 32250 Cash Discount on bonds payable 1.868 6000 ts Prey 5ofsli Next> ader

Explanation / Answer

no Date General Journal Debit Credit 1 2/1/2018 Cash 786,220 Discount on bonds payable 73,780 Bonds payable 860,000 2 7/31/2018 interest expense (786,220*5%) 39,311 Discount on bonds 611 cash (860,000*4.5%) 38700 3) 12/31/2018 interest expense (786220+611)*5%*5/6 32785 Discount on bonds 535 interest payable (38700/6*5) 32250 4) 1/31/2019 interest expense 6557 interest payable 32,250 discount on bonds 107 cash 38,700

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