Requirements 1. Journalize the following transactions: a. Issuance of half of the bonds on May 31, 2021 b. Payment of interest on November 30, 2021 c. Accrual of interest on December 31, 2021 d. Payment of interest on May 31, 2022 2. Report interest payable and bonds payable as they would appear on the company's balance sheet at December 31, 2021.
Requirements 1. Journalize the following transactions: a. Issuance of half of the bonds on May 31, 2021 b. Payment of interest on November 30, 2021 c. Accrual of interest on December 31, 2021 d. Payment of interest on May 31, 2022 2. Report interest payable and bonds payable as they would appear on the company's balance sheet at December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The board of directors of Images Plus authorized the issue of $6,000,000 of 7%, 15-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on
May 31, 2021, at par.
Read the requirements.
Requirement 1. Journalize the transactions a through d. (Record debits first, then credits. Exclude explanations from journal entries.)
a. Issuance of half of the bonds on May 31, 2021
Date
2021
May
31
Journal Entry
Accounts
Debit
Credit
Requirements
1. Journalize the following transactions:
a. Issuance of half of the bonds on May 31, 2021
b. Payment of interest on November 30, 2021
c. Accrual of interest on December 31, 2021
d. Payment of interest on May 31, 2022
2. Report interest payable and bonds payable as they would appear on
the company's balance sheet at December 31, 2021.
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