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Hi, please help! Please provide detail solution of how you get these answer! Thank you! Answer it only in the case when you can answer all the questions!

Exercise 14-3 Presented below are two independent situations. 1. On January 1, 2017, Bridgeport Company issued $408,000 of 9%, 10-year bonds at par Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1 2017 Indigo Company issued $360 000 of 11%, 10-year bonds dated January 1 at par plus accrued interest nterest is payable sem annuall y on July 1 and January 1 For each of these two independent situations, prepare journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest on July 1 (c) The accrual of interest on December 31.

Explanation / Answer

ANS

JOURNAL ENTRY

DATE PARTICULARS DR($) CR($) BRIDGEPORT COMPANY: 01/01/2017 CASH A/C DR 408000 TO BONDS PAYABLE A/C 408000 (BEING BONDS ISSUED) 01/07/2017 INTEREST EXPENSE DR 9180 TO CASH A/C ($408000*9%*3/12) 9180 (BEING INTEREST PAID) 31/12/2017 INTEREST EXPENSE A/C DR 9180 TO INTEREST PAYABLE A/C 9180 (BEING INTEREST ACCRUED ON DEC31) INDIGO COMPANY 01/06/2017 CASH A/C (360000+16500) DR 376500 TO BONDS PAYABLE A/C 360000 TO INTEREST EXPENSE A/C(360000*11%*5/12) 16500 (BEING BONDS ISSUED) 01/07/2017 INTEREST EXPENSE A/C DR 19800 TO CASH A/C 19800 (BEING INTEREST PAID) 31/12/2017 INTEREST EXPENSE A/C DR 19800 TO INTEREST PAYABLE A/C 19800 (BEING INTEREST ACCRUED ON DEC31)

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