Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at $9,777,000 cash when the market rate for this bond is 12% Required:Prepare the general journal entry to record the issuance of the bonds on January 1, 2005.Assume that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2005.JOURNAL DATE DEBITCREDITa) JAN. 1,2005 b) JUNE 30

Bonds are a form of liability for the business, for which regular interest payments needs to be made…

Answered: Walker Corporation issued 10%, 5-year…

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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Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005. Interest is to be paid semiannually on each June 30 and December 31. The bonds are issued at $9,777,000 cash when the market rate for this bond is 12%

Required:

Prepare the general journal entry to record the issuance of the bonds on January 1, 2005.
Assume that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30, 2005.

JOURNAL

DATE	DEBIT	CREDIT
a) JAN. 1,2005



b) JUNE 30

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