The Colson Company issued S$300.000 of 10% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1, and January 1. The bonds are issued at face value. Prepare Colson's Journal entry for the July 1 Interest Payment. O Cash $15.000 Interest Expense $15.000 O nterest Expense Cash O nterest Expense Interest Payable O None of the above $15.000 $15.000 $15.000 $15.000

The Colson Company issued S$300.000 of 10% bonds on January 1, 2017. The bonds are due January 1, 2022, with interest payable each July 1, and January 1. The bonds are issued at face value. Prepare Colson's Journal entry for the July 1 Interest Payment. O Cash $15.000 Interest Expense $15.000 O nterest Expense Cash O nterest Expense Interest Payable O None of the above $15.000 $15.000 $15.000 $15.000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 2CE

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Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
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