Chrome File Edit View History Bookmarks People Window Help _ 84% 1, Wed 10:46 AM
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Question
Chrome File Edit View History Bookmarks People Window Help _ 84% 1, Wed 10:46 AM E CengageNOWv2 Online teaching and learning resource from Cengage Learning v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMain.doPinvokers&takeAssignmentSessionLocator;=assignment-takeBinprogress-false Chapter 11 Assignment eBook Show Me How Calculator 1. BE.11-01 Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 696, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 x 6% x ½ year), receiving cash of $5,000,000 2. BE.11-03 3. BE.11-06 ALGO 4. EX.11-05 ALGO 5. EX.11-010.AP.1 ALGO 6. PR.11-02.ALGO 7. PR.11-04.AP.1 AND.AP.2.AL... (a) Journalize the entry to record the issuance of the bonds. (b) Journalize the entry to record the first interest payment on June 30. (c) Journalize the entry to record the payment of the principal on the maturity date Check My Work Next Progress: 1/7 items 29Explanation / Answer
Solution:
Journal Entries
Date
Account Titles
Debit
Credit
a)
Cash
$5,000,000
Bonds Payable
$5,000,000
(Issuance of bonds recorded
b)
Interest Expense
$150,000
Cash
$150,000
(First semi annual interest payment recorded)
c)
Bonds Payable
$5,000,000
Cash
$5,000,000
(Maturity of bonds recorded)
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Date
Account Titles
Debit
Credit
a)
Cash
$5,000,000
Bonds Payable
$5,000,000
(Issuance of bonds recorded
b)
Interest Expense
$150,000
Cash
$150,000
(First semi annual interest payment recorded)
c)
Bonds Payable
$5,000,000
Cash
$5,000,000
(Maturity of bonds recorded)
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