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Chapt On January 1, 2016 Danty Corp. purchased $500,000 of Ticktoc 20 year 10% bonds (currem Assigament #2 ACC 1145 Question
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Journal entry on Jan 1, 2016 for purchase of bonds:

Cash/Bank A/c.................Dr 500000

Bonds Payable.................Cr 500000

Journal entry on Dec 31st:

Interest expense...................Dr 50000

Cash/Bank A/c......................Cr 50000   

(500000*10%)

Journal entry on repayment on Jan 1 , 2036 :

Bonds Payable.....................Dr 500000

Cash/Bank A/c.....................Cr 500000

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