Exercise 14-12 (Algo) Bonds; straight-line method; adjusting entry [LO14-2] On March 1, 2024, Tanaka Lighting issued 12% bonds, dated March 1, with a face amount of $450,000. • The bonds sold for $441,000 and mature on February 28, 2044 (20 years). • Interest is paid semiannually on August 31 and February 28 • Tanaka uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by Tanaka Lighting on March 1, 2024, Interest on August 31, 2024, accrued interest on December 31, 2024 and interest on February 28, 2025 Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Exercise 14-12 (Algo) Bonds; straight-line method; adjusting entry [LO14-2] On March 1, 2024, Tanaka Lighting issued 12% bonds, dated March 1, with a face amount of $450,000. • The bonds sold for $441,000 and mature on February 28, 2044 (20 years). • Interest is paid semiannually on August 31 and February 28 • Tanaka uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by Tanaka Lighting on March 1, 2024, Interest on August 31, 2024, accrued interest on December 31, 2024 and interest on February 28, 2025 Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 14-12 (Algo) Bonds; straight-line method; adjusting entry [LO14-2]
On March 1, 2024, Tanaka Lighting issued 12% bonds, dated March 1, with a face amount of $450,000
• The bonds sold for $441,000 and mature on February 28, 2044 (20 years).
• Interest is paid semiannually on August 31 and February 28
.
• Tanaka uses the straight-line method and its fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entries to record the issuance of the bonds by Tanaka Lighting on March 1, 2024, interest on August 31,
2024, accrued interest on December 31, 2024 and interest on February 28, 2025
Note: Do not round intermediate calculations. 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
No
1
2
3
Date
March 01, 2024
Cash
Discount on bonds payable
Bonds payable
August 31, 2024 Interest expense
General Journal
Discount on bonds payable
Cash
December 31, 2024 Interest expense
Discount on bonds payable
Interest payable
February 28, 2025 Interest expense
Interest payable
Discount on bonds payable
Cash
Debit
441,000
9,000
Credit
450,000
27,000
pers](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa8b33c5c-89d8-4547-8d85-1b99c47e1f06%2F20500f79-a052-47ec-96f0-bd29528123e0%2Fiqv8zgo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 14-12 (Algo) Bonds; straight-line method; adjusting entry [LO14-2]
On March 1, 2024, Tanaka Lighting issued 12% bonds, dated March 1, with a face amount of $450,000
• The bonds sold for $441,000 and mature on February 28, 2044 (20 years).
• Interest is paid semiannually on August 31 and February 28
.
• Tanaka uses the straight-line method and its fiscal year ends December 31.
Required:
1. to 4. Prepare the journal entries to record the issuance of the bonds by Tanaka Lighting on March 1, 2024, interest on August 31,
2024, accrued interest on December 31, 2024 and interest on February 28, 2025
Note: Do not round intermediate calculations. 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
No
1
2
3
Date
March 01, 2024
Cash
Discount on bonds payable
Bonds payable
August 31, 2024 Interest expense
General Journal
Discount on bonds payable
Cash
December 31, 2024 Interest expense
Discount on bonds payable
Interest payable
February 28, 2025 Interest expense
Interest payable
Discount on bonds payable
Cash
Debit
441,000
9,000
Credit
450,000
27,000
pers
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