Swanson Corporation issued $7.400.000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is 2033 Swanson's financial year ends on December 31. Prepare the following jounal entries a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds (Omit the "S" sign in your response.) Date General Journal Debit Credit Apr. 1, 2013 Cash Premium on bonds payable Bond payable b. Prepare the journal entry at September 30, 2013, to pay interest and to amortize the bond premium. (Omit the "s" sign in your response.) Date Sept 30, 2013 Bond interest expense General Journal Debit Credit Premium on bonds payable Cash c. Prepare the journal entry at March 31. 2033, to pay interest, amortize the bond premium, and retire the bonds at maturity (make two separate entries) (Omit the "S" sign in your response.) Date General Journal Debit Credit Mar. 31, 2033 Bond interest payable Bond interest expense Premium on bonds payable Cash Mar. 31, 2033 Bonds payable Cash

Swanson Corporation issued $7.400.000 of 20-year, 8 percent bonds on April 1, 2013, at 102. Interest is 2033 Swanson's financial year ends on December 31. Prepare the following jounal entries a. Prepare the journal entry at April 1, 2013, to record the issuance of the bonds (Omit the "S" sign in your response.) Date General Journal Debit Credit Apr. 1, 2013 Cash Premium on bonds payable Bond payable b. Prepare the journal entry at September 30, 2013, to pay interest and to amortize the bond premium. (Omit the "s" sign in your response.) Date Sept 30, 2013 Bond interest expense General Journal Debit Credit Premium on bonds payable Cash c. Prepare the journal entry at March 31. 2033, to pay interest, amortize the bond premium, and retire the bonds at maturity (make two separate entries) (Omit the "S" sign in your response.) Date General Journal Debit Credit Mar. 31, 2033 Bond interest payable Bond interest expense Premium on bonds payable Cash Mar. 31, 2033 Bonds payable Cash

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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