https/ main.uni Kimmel, Financial Accounting, Be, Custom for University of Akron
ID: 2522792 • Letter: H
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https/ main.uni Kimmel, Financial Accounting, Be, Custom for University of Akron Brief Exercise 10-10 Riverbed Corp issued 2,300 6%, 5-year, $1,000 bonds dated January 1, 2017, at face value. In Prepare the journal entry to record the sale of these bonds on January 1, 2017.(Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2017 Debit Credit b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense. (Credit account titles are when amount is entered. Do not indent manually.) DateAccount Titles and Explanation Dec. 31, 2017 Debit Credit (e) Prepare the yournel entry on Jansary 1, 2018, to record interest paid. (Credit account titles are automatically indented when amountis entered. De not indent manualy. Date Jan. 1, 2018 Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS question Attempts? 0 of 3 used SAVE FOR LATER SUBMIT ANSWERExplanation / Answer
1.Journal Entry to record the sale of Bond on January 1,2017
Dr Cash A/c $23,00,000
Cr Bonds Payable A/c $23,00,000
2.Adjusting journal entry on December 31, 2017, to record interest expense
Dr Bond Interest Expense A/c $ 1,38,000
Cr Accrued Interest Payable A/c $ 1,38,000
($23,00,000 x 6%)
3.Journal entry on January 1, 2018, to record interest paid
Dr Accrued Interest Payable A/c $ 1,38,000
Cr Cash A/c $ 1,38,000
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