On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The bonds are issued at 96 and pay interest on June 30th and December 31st. Assume bonds payable are amortized using the straight line method ### Financial Accounting: Bond Transactions#### Requirements1. **Journalize the issuance of the bonds on June 30.**2. **Journalize the semiannual interest payment and amortization of the bond discount on December 31.**---### Requirement 1: Journalize the Issuance of the Bonds on June 30*(Record debits first, then credits. Select explanations on the last task.)*#### Date: June 30| Accounts and Explanation | Debit | Credit ||---------------------------|-------|--------|| | | || | | || | | || | | |---### Requirement 2: Journalize the Semiannual Interest Payment and Amortization of the Bond Discount on December 31*(Record debits first, then credits. Select explanations on the last task.)*#### Date: December 31| Accounts and Explanation | Debit | Credit ||---------------------------|-------|--------|| | | || | | || | | || | | |In the above tables, you will fill in the accounts affected by the transactions, the amounts debited and credited, and provide a brief explanation for each entry. The charts are structured to record journal entries, ensuring financial transactions are documented in accordance with accounting principles.For educational purposes, understanding how to journalize bond issuance and related interest payments is crucial. This includes recognizing the financial impact of issuing bonds at a discount or premium and calculating the interest expense for accurate financial reporting. The exercise helps students grasp the concepts of bond issuance, cost, and interest expense, which are fundamental in corporate finance and accounting.

Here,it is assumed that face value per bond is $ 100. Therefore number of bonds issue=$100,000/$100…

On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The bonds are issued at 96 and pay interest on June 30th and December 31st. Assume bonds payable are amortized using the straight line method

On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The bonds are issued at 96 and pay interest on June 30th and December 31st. Assume bonds payable are amortized using the straight line method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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