### Journal Entry Worksheet**Transaction:** Record the issuance of the bonds on January 1.**Instructions:** *Note: Enter debits before credits.*#### Journal Entry Table:| Date | General Journal | Debit | Credit ||-----------|-----------------|-------|--------|| January 01| | | || | | | || | | | || | | | || | | | || | | | |#### Options:- **Record entry**: Button to save the current journal entry.- **Clear entry**: Button to erase the input and start over.- **View general journal**: Button to access the full general journal for review.This interactive worksheet is designed to help students practice recording financial transactions in a step-by-step manner with real-time feedback. **Bond Amortization and Journal Entries****Paulson Company Bond Issuance**Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000 and semiannual interest payments.**Amortization Table:**| Semiannual Period-End | Unamortized Discount | Carrying Value ||-----------------------|----------------------|----------------|| (0) January 1, issuance | $6,913 | $102,087 || (1) June 30, first payment | $6,049 | $102,951 || (2) December 31, second payment | $5,185 | $103,815 |The table above illustrates the straight-line bond amortization process, showing the reduction in unamortized discount and the increase in carrying value with each semiannual period.**Instructions for Journal Entries:**Use the straight-line bond amortization table to prepare journal entries for the following events:(a) **The issuance of bonds on January 1.**- Record the initial bond issuance at the carrying value and unamortized discount.(b) **The first interest payment on June 30.**- Adjust for interest payment including the reduction of the unamortized discount.(c) **The second interest payment on December 31.**- Reflect the second interest payment and further amortization.For detailed journal entries, click "View transaction list."This educational resource aims to help learners understand bond amortization and journal entry preparation using a real-world example provided by Paulson Company.

Journal entry is the primary step to record the transaction in the books of accounts. Interest…

Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment Carrying Value $ 102,087 102,951 (2) December 31, second payment 103,815 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. Unamortized Discount $ 6,913 6,049 5,185

Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment Carrying Value $ 102,087 102,951 (2) December 31, second payment 103,815 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. Unamortized Discount $ 6,913 6,049 5,185

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

p
Vishnu
Ellis Company issues 8.5 %, five - year bonds dated January 1, 2021, with a $540,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $550, 969. The annual market rate is 8.0% on the issue date. Required: Compute the total bond interest expense over the bonds' life. Prepare an effective interest amortization table for the bonds' life. Prepare the journal entries to record the first two interest payments.
Ike issues $180,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $184,566 when the market rate is 10%. Required 1. Prepare the January 1 journal entry to record the bonds’ issuance. 2. Determine the total bond interest expense to be recognized over the bonds’ life. 3. Prepare an effective interest amortization table for the bonds’ first two years. 4. Prepare the journal entries to record the first two interest payments.
Instructions On the first day of the fiscal year, a company issues a $1,450,000, 5% , five-year bond that pays semiannual interest of $36,250 ($1,450,000 x 5% *%), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles Journal DATE DESCRIPTION JOURNAL POST REF DEBIT CREDIT
On May 1, Holiday Company issued $200,000, 9%, 10-year bonds for $213,591 when the market rate was 8%. Prepare the general journal entry for the first semiannual interest payment and bond premium amortization on November 1, using the effective interest method. Round all amounts to the nearest dollar.
Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $540,871. The annual market rate is 7.5% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Please need answer for all with working please answer do not waste time or question by holding attempt if you can otherwise skip
On the first day of the fiscal year, a company issues a $8,300,000, 10%, 8-year bond that pays semiannual interest of $415,000 ($8,300,000 × 10% × ½), receiving cash of $9,267,140. Journalize the first interest payment and the amortization of the related bond premium, round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select -
Ellis Company issues 7.5%, five-year bonds dated January 1, 2021, with a $440,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $449,140. The annual market rate is 7.0% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2 Dr the de life
On the first day of the fiscal year, a company issues an $416,000, 10%, 5-year bond that pays semiannual interest of $20,800 ($416,000 x 10 % x 1/2), receiving cash of $391,000. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. BD
Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 andsemiannual interest payments. Use the following bond amortization table and prepare journal entries torecord (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the secondinterest payment on December 31.Semiannual Period-End Unamortized Discount Carrying Value(0) January 1, issuance . $7,360 $92,640(1) June 30, first payment . . . . . . . . . . . . 6,624 93,376(2) December 31, second payment 5,888 94,112
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $13,466 $186,534 (1) June 30, first payment 11,782 188,218 (2) December 31, second payment . 10,098 189,902