Journal entries.

Question

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Answer 1

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

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Answer 2

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

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Answer 3

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

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Answer 4

Question

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

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Answer 5

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Answer 6

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

Answer 7

Chapter 10, Problem 1E

2.

To determine

To prepare: Journal entries.

Answer 8

2.

Expert Solution

Explanation of Solution

(a)

Sale of bonds at par on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
Jan 1	Cash		3,400,000
	Bonds payable			3,400,000
	(To record the sold bonds at par)

Table (1)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the cash account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Interest payable on bonds at June 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
June 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (2)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

(c)

Interest payable on bonds at December 30, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
December 30	Bonds interest expense		153,000
	Cash			153,000
	(to record the paid semiannual interest on bonds )

Table (3)

Bonds interest account is an expense account. Interest has been paid by the company which increases the liabilities of the company. So, debit the bonds interest expense account.
Cash is an asset account. Since the Cash is paid, the value of assets is decreased. So, credit the Cash account.

Answer 9

2.

Expert Solution

Answer 10

2.

Expert Solution

Answer 11

Expert Solution

Answer 12

3.

To determine

To prepare: Journal entries.

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.

Answer 13

3.

To determine

To prepare: Journal entries.

Answer 14

3.

Expert Solution

Explanation of Solution

(a)

Issue of bonds at discount on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,332,000
	Discount on bonds payable		68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (4)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Discount on bonds payable account is the liabilities account. Here, at the time of issue of the bonds discount has been given which decrease the liabilities of the company. So, debit the discount on bonds payable account.
Bonds payable account is the liabilities account. Bonds has been sold, which increases the liabilities of the company. So, credit the bonds payable account.

(b)

Issue of bonds at premium on January 1, 2017

Date	Account Title and Explanation	Post. Ref.	Debit ($)	Credit ($)
January 1	Cash		3,468,000
	Premium on bonds payable			68,000
	Bonds payable			3,400,000
	(To record the sold bonds at 98)

Table (5)

Cash account is the assets account. Since the cash is received, the value of assets is increased. So, debit the credit the cash account.
Premium on bonds payable account is the liabilities account. Here, at the time of issue of the bonds premium has been given which increases the liabilities of the company. So, debit the Premium on bonds payable account.
Bonds payable account is the liabilities account. Bonds have been sold, which increases the liabilities of the company. So, credit the bonds payable account.