**Hili Corporation Bond Issue Details****Date of Issue/Sale:** May 1, 20-A **Principal:** $500,000 **Sale Price of Bonds:** 100 **Life of Bonds:** 10 years **Stated Rate:** 6% a year, payable semiannually on October 31 and April 30 **Required Journal Entries:**1. **Issuance of Bonds:** May 1, 20-A2. **First Interest Payment:** October 31, 20-A3. **Adjusting Entry:** December 31, 20-A4. **Reversing Entry:** January 1, 20-B*Note: Leave the amount box blank if an entry is not required.***Journal Entry Table Format:**| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT ||-----------|------------------------|------------|-------|--------|| 1. May 1 | | | | || 2. | | | | || 3. | | | | || 4. Oct. 31| | | | || 5. | | | | | **General Journal Entries Preparation**Prepare the following general journal entries:1. **The issuance of the bonds on May 1, 20-A.**2. **The first interest payment for 20-A.**3. **The adjusting entry for December 31, 20-A.**4. **The reversing entry for January 1, 20-B.***Guidelines:*- If an amount box does not require an entry, leave it blank.**Journal Entry Template:**| Date | Description | Post. Ref. | Debit | Credit ||--------|-------------|------------|-------|--------|| a. May 1 | | | | || b. Oct. 31 | | | | || c. Dec. 31 | | | | || d. Jan. 1 | | | | |This template provides a structured way to enter and track financial transactions within the journal, ensuring accuracy in financial reporting.

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HİLİ Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 100 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. b. The first interest payment for 20-A. C. The adjusting entry for December 31, 20-A. d. The reversing entry for January 1, 20-B.-

HİLİ Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 100 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. b. The first interest payment for 20-A. C. The adjusting entry for December 31, 20-A. d. The reversing entry for January 1, 20-B.-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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