Question

OCaHually on J ale is 12% Problem 10-4A Part 4 4. Prepare the journal entries to record the first two interest payments. View transaction list Journal entry worksheet 2 Record the interest payment and amortization on June 30. Note: Enter debits before credits. Date General Journal Debit Credit June 30 Bond interest expense 6,521 Discount on bonds payable wwwww Cash View general journal Clear entry Record entry

Answer 1

Solution 2:

D F Total bond interest expense Over life of bonds: Amount Paid: 8 Payments of ($560,000*9%*6/12=$25200) each Par Value at maturity Total Repaid Less: Amount Borrowed Total Bond interest Expense 9 $ 201,600 $560,000 $761,600 $507,831 $253,769 10 12 13 14 15 20 21 22 23 28 29 30 31 32 33 34 35 36 37 38 40 41 -176 (5) Sheet31 (6) Sheet472 Sheet473 Sheet474

Solution 4:

Credit Debit 30470 Date Account title 30-Jun-19 Bond Interest Expense Dr ($507831*12%*6/12) Discount on bond Cash 5270 25200 30786 31-Dec-19 Bond Interest Expense Dr ($507831+5270)*12%*6/12) Discount on bond Cash 5586 25200 A5 47 -176 (5) Sheet31 (6) Sheet472 ) Sheet473 Sheet474