CALCULATOR FULL SCREEN | | PRINTER VERS?ON | 4 BACK NEXT Presented below are two

Question

CALCULATOR FULL SCREEN | | PRINTER VERS?ON | 4 BACK NEXT Presented below are two independent situations 1. On January 1, 2017, Shamrock Company issued $324,000 of 9%, 10-year bonds at par. Interest is payable quarter, on April 1, July 1, and January 1. 2. On June 1, 2017, Bridgeport Company issued $276,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. For each of these two independent situations, prepare yournal entries to record the following. (If no entry is required, select "No Entry" for the account titles are automatically indented when amount is entered. Do not indent account titles and enter O for the amounts. Credit manually.) (a) The issuance of the bonds. (b) The payment of interest on July 1. (c) The accrual of interest on December 31. bate DebitCredit Account Titles and Explanation 1. Shamrock Company 2. Bridgeport Company; Version 4.24.6.2 1 2000-201820hnwie.asons.inc. All Rights Reserved. A Division of 20hr)elseasons.ins. spolieY 4

Explanation / Answer

SOLUTION:

PART-1 Debit Credit A Cash 324,000 Bonds payable 324,000 B Interest expense 7290 Cash 7290 324000 * 9 % * 3/12 C Interest expense 7290 Interest payable 7290 PART-2 A Cash 289,800 Bonds payable 276,000 Interest expense 13,800 276,000 * 12% * 5/12 B Interest expense 16560 Cash 16,560 276,000 * 12% * 6/12 C Interest expense 16,560 16,560 Interest payable 16,560 16,560

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