Question

Question 1 Not complete Marked out of 19.00 P Flag question Recording Entries for Bonds Sold Between Interest Dates On May 1, 2020, Setup Inc, sold an issue of 5%, $2,000 bonds dated January 1, 2020, to yield 5%. The bonds pay interest every June 30 and December 31, and mature December 31, 2024. a. Provide journal entries to be made by Setup Inc. at each of the following dates. 1. May 1, 2020, bond issuance. 2. June 30, 2020, first interest payment. • Note: List multiple debits or credits (when applicable) in alphabetical order. Note: Round your answer to the nearest whole dollar. Date Account Name Dr. Cr. a. May 1, 2020 0 June 30, 2020 0 b. Indicate the amount of interest expense to be recorded in the income statement of Setup Inc, for the six months ended June 30, 2020. Check

Answer 1

required a) credit Date may 1 2020 $ account name Debit cash 2,033 interest payable ( 2000 x 5% x 4/12) Bonds Payable (record the issue of bonds along with 4 months interest) 33 2,000 $ ljune 30 2020 $ 33 Interest Expense (2000x5% x 2/12) interest payable Cash (Record the interest payment) $ 50 required b) interest to be recorded for the period june 30 $ 17