Janco, Inc., completed the following selected transactions:

Instructions 1. Record the transactions in general journal form.
2. Post entries to the Interest Expense account. Label the adjusting, closing, and reversing entries.

Transcribed Image Text:

Year 1 Mar. 1 Issued $800,000 of 20-year, 9 percent bonds, dated March 1 of this year, at 104. Interest is payable semiannually on September 1 and March 1. Sept. 1 Paid semiannual interest on bonds. Dec. 31 Recorded adjusting entry for accrued interest payable. Year 2 31 31 Jan. 1 Mar. 1 Sept. 1 Dec. 31 31 Recorded adjusting entry for amortization of premium on bonds. Closed Interest Expense account. Reversed adjusting entry for accrued interest payable. Paid semiannual interest on bonds. Paid semiannual interest on bonds. Made adjusting entry to record accrued interest payable. Made adjusting entry to record amortization of premium on bonds. 31 Closed Interest Expense account.