Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000 Sale price of bonds: 99 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on September 30 and March 31 Required: Prepare the following general journal entries. a.  The issuance of the bonds on April 1, 20-A. b.  The interest payment and premium amortization for first six months. c.  The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gia Company had the following bond issue:

Date of issue/sale: April 1, 20-A
Face value: $200,000
Sale price of bonds: 99
Life of bonds: 10 years
Stated rate: 6% a year payable semiannually on September 30 and March 31

Required:

Prepare the following general journal entries.

a.  The issuance of the bonds on April 1, 20-A.

b.  The interest payment and premium amortization for first six months.

c.  The redemption of $50,000 worth of bonds on April 1, 20-E, at 102.

If an amount box does not require an entry, leave it blank.

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