Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance of the bond on January 1, 2018. 2. Journalize the payment of semiannual interest on the bond on June 30, 2018. Include the amortization as part of the interest payment. 3. Journalize the repayment of  the bond afer the final interest payment was made.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018.

1. Journalize the issuance of the bond on January 1, 2018.
2. Journalize the payment of semiannual interest on the bond on June 30, 2018.
Include the amortization as part of the interest payment.
3. Journalize the repayment of  the bond afer the final interest payment was made.

 

 

    GENERAL JOURNAL      
          POST    
Date Account/Description REF. Debit Credit
         
         
         
         
         
         
         
         
         
         
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Bonds are the debts of an issuing company that is repayable after a specific period of time, it may be redeemed at par or at a premium. 

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