On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE   Debit Credit X/X                                         b. Journalize the first annual interest payment on December 31, 20X1. DATE   Debit Credit X/X                                         c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE   Debit Credit X/X                                         d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction. DATE   Debit Credit X/X

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
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On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond.

DATE

 

Debit

Credit

X/X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b. Journalize the first annual interest payment on December 31, 20X1.

DATE

 

Debit

Credit

X/X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.)

DATE

 

Debit

Credit

X/X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction.

DATE

 

Debit

Credit

X/X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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