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Chapter 10 Homework Assignments Hel 3 Paulson Company issues 6%, four-year bonds

ID: 2559537 • Letter: C

Question

Chapter 10 Homework Assignments Hel 3 Paulson Company issues 6%, four-year bonds on December 31 , 2017, with a par value of S9500 and semiannual interest payments. 88,367 8.33 points ) 6/30/2018 12) 12/31/2018 5, 804 4,97 Use the above straight -line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2017 b)The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018. Print Journal entry worksheet Record the issue of bonds with a par value of $95,000 casth General Journal Dec 31, 2017

Explanation / Answer

Date

General Journal

Debit

Credit

December 31, 2017

Cash

$ 88,367.00

Bonds payable

$ 6,633.00

Discount on issue of bonds

$ 81,734.00

June 30, 2018

Interest expense

$ 3,679.00

Discount on issue of bonds ($6,633-$5,804)

$ 829.00

Cash ($95,000*6%*1/2)

$ 2,850.00

December 31, 2018

Interest expense

$ 3,679.00

Discount on issue of bonds ($5,804-$4,975)

$ 829.00

Cash ($95,000*6%*1/2)

$ 2,850.00

Date

General Journal

Debit

Credit

December 31, 2017

Cash

$ 88,367.00

Bonds payable

$ 6,633.00

Discount on issue of bonds

$ 81,734.00

June 30, 2018

Interest expense

$ 3,679.00

Discount on issue of bonds ($6,633-$5,804)

$ 829.00

Cash ($95,000*6%*1/2)

$ 2,850.00

December 31, 2018

Interest expense

$ 3,679.00

Discount on issue of bonds ($5,804-$4,975)

$ 829.00

Cash ($95,000*6%*1/2)

$ 2,850.00

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