1 2 3 Finist attempt Question 2 Nos camole Marked out of 38.00 Hag cuestion Bonds Payable journal Entries: Issued at Par Plus Accrued Interest Richard, Inc, which doses its books on December 31, is authorized to issue $600,000 of six percent, 20-year bonds dated March 1, with interest payments on September 1 and March 1. Required Prepare journal entries to record the following events, assuming that the bonds were sold at 100 plus accrued interest on July 1. a. The bond issuance. b. Payment of the semiannual interest on September 1. c. Accrual of bond interest expense at December 31. d. Payment of the semiannual interest on March 1 of the following year e. Retirement of $200,000 of the bonds at 104 on March 1. Year 3 immediately after the interest payment on that date) General Journal Description Date Debit Credit JUL 1 0 OS 0 0 Cash 5 Bonds Payable Bond Interest Payable Issuance of bonds plus accrued interest 0 0 0 pl. Band interest Payable Bond interest Expense Cash ODO 0 3 0 my businesscourse.com Chapter 10 wed Problems Business ourse Return to course C Accrual or bond Interest expense at December 31 d. Payment of the semiannual interest on March 1 of the following year. e Retirement of $200,000 of the bonds at 104 on March 1, Year 3 (immediately after the interest payment on tham Date General Journal Description Debit Credit 1 Os 0 0 Cash . 5 Bonds Payable Bond Interest Payable : Issuance of bonds plus accrued interest 0 0 0 O 0 Sept. Bond interest Payable Bond Interest Expense Cash To record semiannual interest payment D 0 . 0 D Dec 31 Bond Interest Expense Bond Interest Payable To accrue interest expense . O O d 0 0 0 0 0 0 Mar Bond interest Payable Bond interest Expense + Cash . To record semiannual interest payment e Mar Bonds Payable Loss on Bond Retirement . Cash To record retirement of bonds 0 0 0 0 0 0 Check Previous Save Answers