M Chapter 9 Homework M Check Your Work O Rae Srem murd-Black Bee × × C ezto.mhed

Question

M Chapter 9 Homework M Check Your Work O Rae Srem murd-Black Bee × × C ezto.mheducation.com/hm.tpx value: 2.00 points Pretzemania, Inc., issues 5%, 20-year bonds with a face amount of $62,000 for $70,480 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is 4%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Vicw transaction list Journal entry worksheet 2 Record the bond issue. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general journal

Explanation / Answer

Date General Journal Debit Credit January 01, 2018 Cash $70,480 Bonds payable $70,480 June 30, 2018 Interest expense($70,480 × 4% × ½) $1,409.6 Bonds payable $140.4 Cash($62,000 × 5% × ½) $1,550

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