Homework Answers
1) Journal entry
| Date | account and explanation | Debit | Credit |
| July 1 | Cash | 2000000 | |
| Bonds payable | 2000000 | ||
| Dec 31 | Interest expense (2000000*9%*6/12) | 90000 | |
| Cash | 90000 | ||
| Dec 31 | Bonds payable | 2000000 | |
| Gain on sale of bond redemption | 60000 | ||
| Cash (2000000*.97) | 1940000 |
2) Journal entry
| date | account and explanation | Debit | Credit |
| Interest expense | 39375 | ||
| Premium on bonds payable (41500/20) | 2075 | ||
| Cash | 41450 | ||
| (To record interest) |
3) Interest expense on first installment = 360000*6% = 21600
Principal portion on first installment = 134680-21600 = 113080
| Date | account and explanation | Debit | Credit |
| Dec 31 | Interest expense | 14815.20 | |
| Interest payable (360000-113080)*6% | 14815.20 | ||
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only answer question 2 and 3 please
Question Completion Status: Journalize the entries the following entries...
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