Exercise 10-16A (Algo) Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1, Price Company issued $321,000 of five-year, 7 percent bonds at 99. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet i i No 1 NI 2 Im 3 Date Jan 01 Dec 31 Dec 31 General Journal Cash Discount on bonds payable Bonds payable Interest expense Discount on bonds payable Cash Interest expe Discount on bonds payable Cash Debit 321,000 3,210 Credit
Exercise 10-16A (Algo) Straight-line amortization for bonds issued at a discount LO 10-4 On January 1, Year 1, Price Company issued $321,000 of five-year, 7 percent bonds at 99. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet i i No 1 NI 2 Im 3 Date Jan 01 Dec 31 Dec 31 General Journal Cash Discount on bonds payable Bonds payable Interest expense Discount on bonds payable Cash Interest expe Discount on bonds payable Cash Debit 321,000 3,210 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Im not sure if i put the inputs correct or not. Please fill the numbers as well
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Transcribed Image Text:Exercise 10-16A (Algo) Straight-line amortization for bonds issued at a discount LO 10-4
On January 1, Year 1, Price Company issued $321,000 of five-year, 7 percent bonds at 99. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list View journal entry worksheet
i
i
No
1
NI
2
Im
3
Date
Jan 01
Dec 31
Dec 31
General Journal
Cash
Discount on bonds payable
Bonds payable
Interest expense
Discount on bonds payable
Cash
Interest expe
Discount on bonds payable
Cash
Debit
321,000
3,210
Credit
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