Question

Connect Assignment: Chapter 10 6 Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,800,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. points 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded). View transaction list eBook Hint Journal entry worksheet < 1 2 3 4 Print Record the issuance of bonds for cash on January 1. References Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record entry Clear entry View general journal

Answer 1

SOLUTION :
	Transaction	General Journal	Debit	Credit
	January 01, 2019	Cash	$28,00,000
		Bonds Payable		$28,00,000
	June 30, 2019	Interest Expenses ($ 2,800,000 X 9% X 6/12)	$1,26,000
		Cash		$1,26,000
	Dec 31, 2019	Interest Expenses ($ 2,800,000 X 9% X 6/12)	$1,26,000
		Cash		$1,26,000
	Dec 31, 2022	Bonds Payable	$28,00,000
		Cash		$28,00,000