Exercise 10-21 Oriole Company issued $456,000 9%,15-year bonds on De cember 31,
ID: 2559823 • Letter: E
Question
Exercise 10-21 Oriole Company issued $456,000 9%,15-year bonds on De cember 31, 2016, for $437,760. Interest is payable annually on December 31. Orlole uses the straight-line method to amortize bond premium or discount. Prepare the jounal entries to record the following events. (Credit account titles are automatically Indented (a) The issuance of the bonds. when amount is entered. Do not indent manually.) (b) The payment of interest and the discount amortization on December 31, 2017 e redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded Date Account Titles and Explanation Debit Credit (a) Dec. 31, 2016 (b) Dec. 31, 2017 (c) Dec. 31, 2031 Version 4.24.3 017 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley &Explanation / Answer
Journal entries :
Date accounts & explanation debit credit 2016, dec 31 Cash a/c 437760 Discount on bonds payable a/c 18240 Bonds payable a/c 456000 (To record issuance of bonds payable) 2017, dec 31 Interest expenses a/c 42256 Amortization of discount on bonds payable a/c 1216 Cash a/c (456000*9%) 41040 (To record interest expenses) 2031, dec 31 Bonds payable a/c 456000 Cash a/c 456000 (To record bonds maturity)Related Questions
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