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. Page: 1   DATE DESCRIPTION POST. REF. DEBIT CREDIT   1 a. Apr. 1         1 2           2 3           3 4           4 5 b. Sept. 30     - Select - - Select - 5 6       - Select - - Select - 6 7       - Select - - Select - 7 8           8 9 c. Apr. 1     - Select - - Select - 9 10       - Select - - Select - 10 11       - Select - - Select - 11 12       - Select - - Select - 12

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.

Page: 1

  DATE DESCRIPTION POST.
REF.
DEBIT CREDIT  
1 a. Apr. 1
 
      1
2  
 
      2
3  
 
      3
4           4
5 b. Sept. 30
 
  - Select - - Select - 5
6  
 
  - Select - - Select - 6
7  
 
  - Select - - Select - 7
8           8
9 c. Apr. 1
 
  - Select - - Select - 9
10  
 
  - Select - - Select - 10
11  
 
  - Select - - Select - 11
12  
 
  - Select - - Select - 12
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Bond Amortization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education