The following is list of accounts each represented by letter(s). A Accounts Payable U Loss from discontinued operations B Accounts Receivable V Losses due to fire E Accumulated Depreciation-Equip W Merchandise Inventory F Bonds Payable X Notes Payable G Cash Y Premium on Bonds Payable H Cost of Goods Sold Z Rent Expense I Capital Lease Payable AA Rent Revenue J Discount on Bonds Payable BB Retained Earnings K Equipment EE Salaries and Wages Payable L Federal Income Tax Withheld Payable FF Sales Returns M Federal Unemployment Taxes Payable GG Sales Revenues N FICA Taxes Payable HH Sales Taxes Payable O Income Summary II Shipping Expense P Income Taxes Payable JJ State Income Tax Withheld Payable Q Interest Expense KK State Unemployment Taxes Payable R Interest Payable LL Supplies S Land MM Tax Expense T Land Improvement NN Unearned Rent Revenue Example of Answer: G4000D,B2000D,GG5000C,HH1000C Where G denotes Cash account, 4000 is the amount, D stands for debit, B denotes Accounts Receivable account, 2000 is the amount, D stands for debit, GG denotes Service Revenues, 5000 is the amount, and C stands for credit, HH denotes Sales Taxes Payable, 1000 is the amount, C stands for Credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts (in order of dollar amount – large amount to small amount), then the credit accounts (in order of dollar amount – large amount to small amount). Holly Company issued $2,000,000, 6%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 5%. Provide journal entry for the 1st interest payment by the bond.

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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The following is list of accounts each represented by letter(s).

A	Accounts Payable	U	Loss from discontinued operations
B	Accounts Receivable	V	Losses due to fire
E	Accumulated Depreciation-Equip	W	Merchandise Inventory
F	Bonds Payable	X	Notes Payable
G	Cash	Y	Premium on Bonds Payable
H	Cost of Goods Sold	Z	Rent Expense
I	Capital Lease Payable	AA	Rent Revenue
J	Discount on Bonds Payable	BB	Retained Earnings
K	Equipment	EE	Salaries and Wages Payable
L	Federal Income Tax Withheld Payable	FF	Sales Returns
M	Federal Unemployment Taxes Payable	GG	Sales Revenues
N	FICA Taxes Payable	HH	Sales Taxes Payable
O	Income Summary	II	Shipping Expense
P	Income Taxes Payable	JJ	State Income Tax Withheld Payable
Q	Interest Expense	KK	State Unemployment Taxes Payable
R	Interest Payable	LL	Supplies
S	Land	MM	Tax Expense
T	Land Improvement	NN	Unearned Rent Revenue

Example of Answer: G4000D,B2000D,GG5000C,HH1000C
Where G denotes Cash account, 4000 is the amount, D stands for debit, B denotes Accounts Receivable account, 2000 is the amount, D stands for debit, GG denotes Service Revenues, 5000 is the amount, and C stands for credit, HH denotes Sales Taxes Payable, 1000 is the amount, C stands for Credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts (in order of dollar amount – large amount to small amount), then the credit accounts (in order of dollar amount – large amount to small amount).

Holly Company issued $2,000,000, 6%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 5%. Provide journal entry for the 1^st
interest payment by the bond.

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