On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions:
On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions:
Introduction:
The act of recording or keeping track of any financial or non-financial action is known as a journal entry.
An accounting journal keeps track of transactions and shows the debit and credit balances of a business. Every entry in the journal entry either be a debit or a credit. Otherwise, if the total of the debits does not equal the total of the credits, the journal entry is said to be unbalanced.
Recurring items that can be reported in journal entries include depreciation and bond amortization. Journal entries are often entered in a separate module from accounts payable, which has its own subledger with an indirect influence on the general ledger.
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