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Clem Company issued $840,000, 10- year, 4 percent bonds on January 1, 2015. The bonds sold for $761,000. Interest is payable

Journal entry worksheet < 1 2 Record the issuance of bonds with a face value of $840,000 for $761,000. Note: Enter debits bef

Journal entry worksheet < 1 Record the interest payment on December 31, 2015 Note: Enter debits before credits. Date General

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Solution:

Date General Journal Debit Credit
1-Jan-2015 Cash 761,000
Discount on bond payable 79,000
Bonds payable 840,000
31-Dec-2015 Bond interest expense ($761,000*5%) 38,050
Discount on bond payable 4,450
Cash ($840,000*4%) 33,600
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