Question

(2) E9-19A (similar to) On January 1, 2017 Bronson Corporation sued five-year, 10% bonds payable watace 2.800,000. The bonds were issued at B5 and pay interest on January 1 andy1 Bronson amores bond discounts using the right method On December 31, 2010, Bronson retired the bonds cany by purchasing them atamarat prices The company's focal year ends on December 31 Read the Requirement 1. Journaise the issuance of the bonds on January 1, 2017(ecord debits to the credits Exclude explanations to any juma) Journal Entry Date Accounts De Credh 2017 Ca Oct on Bonds Payali Bonds Payable 200.00 Choose from any it or enter any number in the input fields and then click Check Answer Check Answer Clear parts remaining

Answer 1

1

	Account	Debit	Credit
2017	Cash	2,380,000
Jan. 1	Discount on bonds payable	420,000
	Bonds payable		2,800,000

2

	Account	Debit	Credit
Jul. 1	Interest expense	161,000.00
	Cash		119,000
	Discount on bonds payable		42,000

3

	Account	Debit	Credit
Dec. 31	Interest expense	161,000.00
	Cash		119,000
	Discount on bonds payable		42,000

4

Particulars	Amount
Bonds payable	2,380,000
Less: discount on bonds pay.	(252,000)
Carrying value	2,128,000

5

Sale value	2,142,000
Carrying value	(2,128,000)
Loss on redemption	14,000

Loss on purchase is 14,000