Instructions On January 1, the first day of the fiscal year, a company issues a S300.000, 9%, 10-year bond that pays semiannual interest of $13,500 (5300,000 x 9% x 1% year), receiving cash of $300,000. Required: Joumalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the psyment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wordling of the account tities. CNOW joumais do not use lines for journal explanations. Every line on a jourmal page is used for debit or credit entries CNOW joumals will automatically indent a credit entry when a credit amount is entered. Journal Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journais do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumais will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF. LIABILITIES DATE DEBIT CREDIT ASSETS EQUITY Jan. 1 Cashi 300,000.00 Bonds Payable 300,000.00 2
Instructions On January 1, the first day of the fiscal year, a company issues a S300.000, 9%, 10-year bond that pays semiannual interest of $13,500 (5300,000 x 9% x 1% year), receiving cash of $300,000. Required: Joumalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the psyment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wordling of the account tities. CNOW joumais do not use lines for journal explanations. Every line on a jourmal page is used for debit or credit entries CNOW joumals will automatically indent a credit entry when a credit amount is entered. Journal Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journais do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumais will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF. LIABILITIES DATE DEBIT CREDIT ASSETS EQUITY Jan. 1 Cashi 300,000.00 Bonds Payable 300,000.00 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
.
Transcribed Image Text:Instructions
On January 1, the first day of the fiscal year, a company issues a S300,000, 9%, 10-year bond that pays semiannual interest of $13,500 ($300,000 x 9% x % year), receiving cash of $300,000.
Required:
Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on
the maturity date of December 31. Refer to the chart of accounts for the exact wording of the account tities. CNOW journais do not use lines for
jourmal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a
credit amount is entered.
Journal
Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Refer to the chart of accounts
for the exact wording of the account titles. CNOW journais do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a
credit entry when a credit amount
entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
Jan. 1
Cash
300,000.00
Bonds Payable
300,000.00
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education