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 searchExplanation / 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
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