Question

Question 24 The Sheffield Company issued $220,000 of 9% 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 98. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Sheffield Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 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 0 decimal places, e.g. 38,548.)

Answer 1

Jan 2 Cash All or 215600 Discount ah Bonde Payouble Ale o 4400 To Bonds Payoke Aic 220000 July 2 Interest Expense Alcoy 9900 To Discount on bonds payable file 440 TO Cash AlC 9460 Dec 81. Interest Expense All or 9900 To Discount on bonds payable Ale uno To Cash AlC 9460. Amortization 9 tonde years = 440 No. of years - Semi annicilly = 4400 - 880 5 886 440