On January 1, 2024, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 101. Journalize the following bond transactions: i (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) a. Journalize the issuance of the bonds on January 1, 2024. Date 2024 Jan. 1 Accounts and Explanation Bonds Payable Debit Credit Cash b. Journali 24. Discount on Bonds Payable Date Debit Credit 2024 Interest Expense Jun. 30 Premium on Bonds Payable c. Journalize the payment of interest and amortization on December 31, 2024. Date 2024 Dec. 31 Accounts and Explanation Debit Credit More info a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Print Done d. Journalize the retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Accounts and Explanation Date Debit Credit 2043 Dec. 31
On January 1, 2024, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 101. Journalize the following bond transactions: i (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) a. Journalize the issuance of the bonds on January 1, 2024. Date 2024 Jan. 1 Accounts and Explanation Bonds Payable Debit Credit Cash b. Journali 24. Discount on Bonds Payable Date Debit Credit 2024 Interest Expense Jun. 30 Premium on Bonds Payable c. Journalize the payment of interest and amortization on December 31, 2024. Date 2024 Dec. 31 Accounts and Explanation Debit Credit More info a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Print Done d. Journalize the retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Accounts and Explanation Date Debit Credit 2043 Dec. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $1,100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 101. Journalize the following bond transactions:
i (Click the icon to view the bond transactions.)
(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.)
a. Journalize the issuance of the bonds on January 1, 2024.
Date
2024
Jan. 1
Accounts and Explanation
Bonds Payable
Debit
Credit
Cash
b. Journali
24.
Discount on Bonds Payable
Date
Debit
Credit
2024
Interest Expense
Jun. 30
Premium on Bonds Payable
c. Journalize the payment of interest and amortization on December 31, 2024.
Date
2024
Dec. 31
Accounts and Explanation
Debit
Credit
More info
a. Issuance of the bonds on January 1, 2024.
b. Payment of interest and amortization on June 30, 2024.
c. Payment of interest and amortization on December 31, 2024.
d. Retirement of the bond at maturity on December 31, 2043, assuming the last
interest payment has already been recorded.
Print
Done
d. Journalize the retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded.
Accounts and Explanation
Date
Debit
Credit
2043
Dec. 31
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