Question

Question 24 The Marin Company issued $250,000 of 11% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1 and January 1. The bonds were issued at 96. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Marin Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to o decimal places, e.g. 38,548.) Debit Credit No. Date (a) January 1, 2017 Account Titles and Explanation Cash

Answer 1

No.	Date	Account title	Debit	Credit
(a)	Jan. 1, 2017	Cash ($250,000x96%)	240,000
		Discount on bonds payable ($250,000x4%)	10,000
		Bonds payable		250,000
(b)	July. 1, 2017	Interest expense	14,750
		Discount on bonds payable (10,000/10 period)		1,000
		Cash ($250,000x5.5%)		13,750
(c)	Dec. 31, 2017	Interest expense	14,750
		Discount on bonds payable (10,000/10 period)		1,000
		Interest payable ($250,000x5.5%)		13,750