Xonic Corporation issued $7,300,000 of 20-year, 8 percent bonds on April 1, 2015

Question

Xonic Corporation issued $7,300,000 of 20-year, 8 percent bonds on April 1, 2015, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2035. Swanson's fiscal year ends on December 31.

Record the issuance of the bonds and entries to be passed post the issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Xonic Corporation issued $7,300,000 of 20-year, 8 percent bonds on April 1, 2015, at 102. Interest is due on March 31 and September 30 of each year, and all of the bonds in the issue mature on March 31, 2035. Swanson's fiscal year ends on December 31.

Explanation / Answer

Date Journal Debit Credit 1/4/2015 cash    7,446,000 Bonds payable 7,300,000 premium on bonds 146,000 30-Sep interest exp       292,000 cash    292,000 7300000*4% 31st dec interest exp 146,000 Interest accrued 146,000 7300000*4%/6*3 31st march Interest       146,000 Interest accrued       146,000 cash    292,000

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