On January 1, 2014, Hauke Corporation issued $900,000, 6%, 10-year bonds at face

Question

On January 1, 2014, Hauke Corporation issued $900,000, 6%, 10-year bonds at face value. Interest is payable annually on January 1. Hauke Corporation has a calendar year end.

Prepare all entries related to the bond issue for 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

2014

Account Titles and Explanation

Debit

Credit

Jan. 1

Dec. 31

LIST OF ACCOUNTS

Accounts Payable
Accounts Receivable
Accumulated Depreciation-Equipment
Accrued Pension Liability
Bonds Payable
Cash
Common Stock
Cost of Goods Sold
Depreciation Expense
Discount on Bonds Payable
Dividends
Equipment
Federal Income Taxes Payable
Federal Unemployment Taxes Payable
FICA Taxes Payable
Gain on Bond Redemption
Income Tax Expense
Income Taxes Payable
Insurance Expense
Interest Expense
Interest Payable
Inventory
Land
Loss on Bond Redemption
Mortgage Payable
No Entry
Notes Payable
Other Operating Expenses
Payroll Tax Expense
Premium on Bonds Payable
Prepaid Insurance
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Sales Revenue
Sales Taxes Payable
Service Revenue
State Income Taxes Payable
State Unemployment Taxes Payable
Subscription Revenue
Ticket Revenue
Unearned Rent Revenue
Unearned Sales Revenue
Unearned Service Revenue
Unearned Subscription Revenue
Unearned Ticket Revenue
Union Dues Payable
Warranty Liability

2014

Account Titles and Explanation

Debit

Credit

Jan. 1

Dec. 31

Explanation / Answer

Date Account title Debit credit jan 1 cash 900,000 Bond payable 900,000 [bond issued] dec31 Interest expense 54000 Interest payable 54000 [interest accrued = 900000*.06]

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