Alana Company sold bonds with a face value of $604,000 for $562,000. The bonds have a coupon rate of 6 percent, mature in 9 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Using a discount account, record the sale of the bonds on January 1 and the payment of interest on June 30 of this year. Alana uses the straight-line amortization method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amounts. View transaction list Journal entry worksheet 1 2 Record the sale of the bonds on January 1. Note: Enter debits before credits. Date January 01 General Journal Debit Credit 7
Alana Company sold bonds with a face value of $604,000 for $562,000. The bonds have a coupon rate of 6 percent, mature in 9 years, and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Using a discount account, record the sale of the bonds on January 1 and the payment of interest on June 30 of this year. Alana uses the straight-line amortization method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar amounts. View transaction list Journal entry worksheet 1 2 Record the sale of the bonds on January 1. Note: Enter debits before credits. Date January 01 General Journal Debit Credit 7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Alana Company sold bonds with a face value of $604,000 for $562,000. The bonds have a coupon rate of 6 percent, mature in 9
years, and pay interest semiannually every June 30 and December 31.
All of the bonds were sold on January 1 of this year. Using a discount account, record the sale of the bonds on January 1 and the
payment of interest on June 30 of this year. Alana uses the straight-line amortization method.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final
answers to nearest whole dollar amounts.
View transaction list
Journal entry worksheet
1
2
Record the sale of the bonds on January 1.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
7
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