Question

Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry quired" in the first account field.) View transaction list

Answer 1

Amortization Sechedule Interest Discount Cash Paid Expense amortized Carrying Value Date at Issue Jun-30 Dec-31 19600 19600 20254 20284 654 684 450092 450746 451430

Issue Entry 1. Record the Bond Issue Date General Journal Debit Credit 01-01-2018 Cash 450092 Discount on Bonds Payable 39908 Bonds Payable 490000 Record the issue of the Bond with Discount Journal entris for interest Payment Record the interest payment and amotization on June 30 1st First Year Date General Journal Debit Credit 30-06-2018 Interest Expenses 20254 Discount on Bonds Payable 654 Cash 19600 Record the interest Expense and amortization of Discount 3. Record theinterest and amotization on Dec 31, First Year Date General Journal Debit Credit 31/6/2018 Interest Expenses 20284 Discount on Bonds Payable 684 Cash 196001 Record the interest Expense and amortization of Discount