Halloway Company has issued three different bonds during 2010. Interest is payab
ID: 2387173 • Letter: H
Question
Halloway Company has issued three different bonds during 2010. Interest is payable semiannually on each of these bonds.
On January 1, 2010, 1,000, 8%, 5-year, $1,000 bonds dated January 1, 2010, were issued at face value.
On July 1, $800,000, 9%, 5-year bonds dated July 1, 2010, were issued at 102.
On September 1, $200,000, 7%, 5-year bonds dated September 1, 2010, were issued at 98.
Prepare the journal entry to record each bond transaction at the date of issuance. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Date Account/Description Debit Credit
1. Jan. 1
2. July 1
3. Sept. 1
Explanation / Answer
Date
Particulars
L/F
Dr $
Cr $
1/1/2010
1/7/2011
1/9/2010
Date
Particulars
L/F
Dr $
Cr $
1/1/2010
Cash 1,000 Bonds payable 1000 (issued $100,000 bonds payable at face amount1/7/2011
Cash 816,000 Bonds payable 800,000 Premium on bonds payable 16,000 (issued $800,000 bonds at premium)1/9/2010
Cash 196,000 Discount on bonds payable 4,000 Bonds payable 200,000 (issued $200,000 bonds at a discount)Related Questions
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