Question

Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium. (Record debits first, then credits. Select explanations on the last line of the journal entry) 6. Journalize the issuance of the bonds payable on January 1, 2018. Date Accounts and Explanation Debit Credit Jan. 1 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 Date Accounts and Explanation Debit Credit Jul. 1 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium. Start by journalizing the issuance of the bonds payable. Date Accounts and Explanation Debit Credit Jan. 1 Now journalize the payment of the first semiannual interest and amortization of the bond. Date Accounts and Explanation Debit Jul. 1 Credit

Answer 1

Date	Accounts and Explanations					Debit	Credit
1-Jan	Cash					72000
	discount on bonds					8000
	bonds payable						80,000
1-Jul	interest expense					1,200
	discount on bonds						400
	cash						800
Date	Accounts and Explanations					Debit	Credit
1-Jan	Cash					89600
	premium on bonds						9600
	bonds payable						80,000
1-Jul	interest expense					320
	premium on bonds					480
	cash						800