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Question 7 (5 points) On April 1, 2019. Alaska Trading Company issued $900,000 of 6%, 10-year bonds. The bonds, which were issued at 98, pay interest on October 1 and April 1. Use this information to prepare the General Journal entry (without explanation to record the April 1, 2019 bond issue. If no entry is required then write "No Entry Required." Deol - Format - B IU - General Journal: Date Accounts Debit Credit A « Ed S he Question 8 (5 points) On January 1, 2018, Baltimore Company issued S200,000 face value, 5%, 10-year bonds at 102. Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2018 fiscal year. Round your answer to the nearest whole dollar. Your Answer: Answer

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Solution: Answer is highlighted in yellow: Naming convention is not available, can be slightly different: 7) Credit Date Apr.01 2019 Journal entries Account title and explaination Cash (900000*98%) Discount on bonds payable (plug) Bonds payable (To record the issuance of bonds payable) Debit 882000 18000 900000 8) 10,000 Interest Paid (200000*5%) Less: Amortization of premium (200000*2%)/10 Interest Expense $ $ $ 9,600