The Pearl Company issued $210,000 of 9% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 101. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Pearl Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation (a) Jan. 1, 2025 Cash Premium on Bonds Payable Bonds Payable (b) July 1, 2025 C Interest Expense Debit 212.100 9,660 Premium on Bonds Payable 210 Cash (c) Dec. 31, 2025 Interest Expense Credit S 9,660
The Pearl Company issued $210,000 of 9% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds were issued at 101. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Pearl Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation (a) Jan. 1, 2025 Cash Premium on Bonds Payable Bonds Payable (b) July 1, 2025 C Interest Expense Debit 212.100 9,660 Premium on Bonds Payable 210 Cash (c) Dec. 31, 2025 Interest Expense Credit S 9,660
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Pearl Company issued $210,000 of 9% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each
July 1 and January 1. The bonds were issued at 101.
Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Pearl Company records straight-line
amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before
credit entries.)
No.
Date
Account Titles and Explanation
(a)
Jan. 1, 2025
Cash
Premium on Bonds Payable
Bonds Payable
(b)
July 1, 2025 O
Interest Expense
Premium on Bonds Payable
Cash
(c)
Dec. 31, 2025
Interest Expense
Debit
212.100
9,660
210
Credit
SUPPORT
9,660
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