1 pt This Test: 9 pts poss t The board of di econ of Laptops Pas athonzes the is

Question

1 pt This Test: 9 pts poss t The board of di econ of Laptops Pas athonzes the issue of S7,000,000 of 9%, 25-year on May 31, 2016, at par bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued Requirements a. Issuance of half of the bonds on May 31,2016 b. Payment of interest on November 30,2016 C. Accrual of interest on December 31,2016 Requirement 1. Joumalize the transactions a through d (Record debits dst,then credits Exolude expianations from journal entries) a. Issuance of half of the bonds on May 31, 2016 Previous pdt 7 8 9 0 6 2 3

Explanation / Answer

Journal Entry S. No. Date Particulars Dr. Amt. Cr. Amt. a. 31-May-16 Cash      3,500,000.00    Bonds Payable    3,500,000.00 (To record the issue of Bonds) b. 30-Nov-16 Interest Expense          157,500.00 $3,500,000 X 9% X 6/12    Cash        157,500.00 (To record the interest paid) c. 31-Dec-16 Interest Expense            26,250.00 $3,500,000 X 9% X 1/12    Interest Payable          26,250.00 (To record the interest acccrued)

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