The Gonzalez Group issued $890,000 of 9% bonds on June 30, 2024, for $978,079. • The bonds were dated on June 30 and mature on June 30, 2044 (20 years). • The market yield for bonds of similar risk and maturity is 8%. • Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024 and interest on June 30, 2025 (at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 Date June 30, 2024 Cash June 30, 2025 X Answer is complete but not entirely correct. General Journal Bonds payable Premium on bonds payable December 31, 202 Interest expense Premium on bonds payable Cash Interest expense Premium on bonds payable ✓ 333 Debit 978,079 35,520 1,520 X 35,520 X 1,520 X Credit 890,000 88,079 37,040 7010

The Gonzalez Group issued $890,000 of 9% bonds on June 30, 2024, for $978,079. • The bonds were dated on June 30 and mature on June 30, 2044 (20 years). • The market yield for bonds of similar risk and maturity is 8%. • Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024 and interest on June 30, 2025 (at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 3 Date June 30, 2024 Cash June 30, 2025 X Answer is complete but not entirely correct. General Journal Bonds payable Premium on bonds payable December 31, 202 Interest expense Premium on bonds payable Cash Interest expense Premium on bonds payable ✓ 333 Debit 978,079 35,520 1,520 X 35,520 X 1,520 X Credit 890,000 88,079 37,040 7010

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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