(Shows computations and references are required) 11- annual interest, receiving

Question

(Shows computations and references are required) 11- annual interest, receiving cash of $18,840,171. Journalize the entry to reco the bonds. On the first day of 2017, a company issues a $10,000,000, 10%, 10-year bond that pays semi- Debit Credit 12. On the first day of the 2017, a annual interest, amortization of the related bond discount using the straight-line metho company issues a $20,000,000, 8%, 10-year bond that pays semi- receiving cash of $18,840,171. Journalize the first interest payment and the d. Debit Credit r 2017, , a company issues a $5,000,000, 10%, 10-year bond that pays semi-annual interest, receiving cash of $5,300,000. Journalize the entry to record the issta of the bonds. Credit Debit

Explanation / Answer

11 Cash 18840171      Bonds payable 10000000      Premium on Bonds payable 8840171 12 Interest expense 857991       Discount on bonds payable 57991 =(20000000-18840171)/20       Cash 800000 13 Cash 5300000      Bonds payable 5000000      Premium on Bonds payable 300000

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