On January 1, Year 1, Price Company issued $248,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 3 Record the entry for recognizing interest expense on Dec. 31, Year 1. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Interest expense 7,440 Discount on bonds payable 1,488 Cash 8,928 Record entry Clear entry View general journal
On January 1, Year 1, Price Company issued $248,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 3 Record the entry for recognizing interest expense on Dec. 31, Year 1. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Interest expense 7,440 Discount on bonds payable 1,488 Cash 8,928 Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, Year 1, Price Company issued $248,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31.
The discount is amortized using the straight-line method.
Required
Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
1
3
Record the entry for recognizing interest expense on Dec. 31, Year 1.
Note: Enter debits before credits.
Date
Dec 31
General Journal
Debit
Credit
Interest expense
7,440
Discount on bonds payable
1,488
Cash
8,928
Record entry
Clear entry
View general journal
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