Question content area top Part 1 Sullivan Company issued $240,000, 10%, 10-year bonds payable at 96 on January 1, 2024. 6. Journalize the issuance of the bonds payable on January 1, 2024. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2024. 8. Assume the bonds payable was instead issued at 106. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Question content area bottom Part 1 6. Journalize the issuance of the bonds payable on January 1, 2024. Date Accounts and Explanation Debit Credit Jan. 1 Part 2 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2024. Date Accounts and Explanation Debit Credit Jul. 1 Part 3 8. Assume the bonds payable was instead issued at 106. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium. Start by journalizing the issuance of the bonds payable. Date Accounts and Explanation Debit Credit Jan. 1 Part 4 Now journalize the payment of the first semiannual interest and amortization of the bond. Date Accounts and Explanation Debit Credit Jul. 1

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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Question content area top

Part 1

Sullivan

Company issued

$240,000,

10%,

10-year

bonds payable at

on January 1,

2024.

6.	Journalize the issuance of the bonds payable on January 1, 2024.
7.	Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2024.
8.	Assume the bonds payable was instead issued at 106. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium.

(Record debits first, then credits. Select explanations on the last line of the journal entry.)

Question content area bottom

Part 1

6. Journalize the issuance of the bonds payable on January 1,

2024.

Date	Accounts and Explanation	Debit	Credit
Jan. 1

Part 2

7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1,

2024.

Date	Accounts and Explanation	Debit	Credit
Jul. 1

Part 3

8. Assume the bonds payable was instead issued at

106.

Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond discount or premium.

Start by journalizing the issuance of the bonds payable.

Date	Accounts and Explanation	Debit	Credit
Jan. 1

Part 4

Now journalize the payment of the first semiannual interest and amortization of the bond.

Date	Accounts and Explanation	Debit	Credit
Jul. 1

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