Question

Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $380,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $349,051. 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Roun your intermediate and final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 3 Record the bond issue. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 Record entry Clear entry View general journal

Answer 1

Answer

--Requirement 2

Date	General Journal	Debit	Credit
01-Jan	Cash	$349,051
	Discount on Bonds Payable	$30,949
	Bonds Payable		$380,000
	(to record bond issuance)
30-Jun-21	Interest Expense ($349051 x 9% x 6/12)	$15,707
	Discount on Bonds Payable		$507
	Cash ($ 380000 x 8% x 6/12)		$15,200
	(to record first interest)
31-Dec-21	Interest Expense ([$349051+507] x 9% x 6/12)	$15,730
	Discount on Bonds Payable		$530
	Cash ($ 380000 x 8% x 6/12)		$15,200
	(to record second interest)