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and dis count amortization LO PL, P2 xercise 10-4 Straight t-Line Recording bond

ID: 2600930 • Letter: A

Question

and dis count amortization LO PL, P2 xercise 10-4 Straight t-Line Recording bond issuance value of $200,000 and semiannual interest payment aulson company issues 6%, four-year bonds, on December 31, 2016, with a par Semiannual Period- Unamortized Carrying End Value 13,466 186,534 0) 12/31/2016 (1) 6/30/2017 (2) 12/31/2017 11,782 10,098 188,218 189,902 Use the above straight-line bond amortization table and prepare journal entries for the following (a) The issuance of bonds on December 31, 2016. (b) The first interest payment on June 30, 2017 (c) The second interest payment on December 31, 2017 View transaction list Journal entry worksheet Record the issuance of the bonds on December 31, 2016. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2016 Record entry Clear entry hew general journal O Type here to search

Explanation / Answer

Answer:

1

Date

Description

Debit $

Credit $

31-Dec-16

Cash

186534

Discounts on bonds payable

13466

Bonds payable

200000

June-30-17

Bond interest expanses

7684

Discounts on bonds payable
(13466-11782)

1684

Cash (200,000*3%)

6000

Dec-31-17

Bond interest expanses

7684

Discounts on bonds payable
(11782-10098)

1684

Cash (200,000*3%)

6000

Date

Description

Debit $

Credit $

31-Dec-16

Cash

186534

Discounts on bonds payable

13466

Bonds payable

200000

June-30-17

Bond interest expanses

7684

Discounts on bonds payable
(13466-11782)

1684

Cash (200,000*3%)

6000

Dec-31-17

Bond interest expanses

7684

Discounts on bonds payable
(11782-10098)

1684

Cash (200,000*3%)

6000