Question
19/47 On January 1, 2020, Sheffield Corporation issued $780,000, 5%, 5-year bonds dated January 1, 2017, at 96. The bonds pay annual interest on January
19/47
On January 1, 2020, Sheffield Corporation issued $780,000, 5%, 5-year bonds dated January 1, 2017, at 96. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Prepare all the journal entries that Sheffield Corporation would make related to this bond issue through January 1, 2021. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit | |
---|---|---|---|---|
| enter an account title to record sale of bonds at a discount | enter a debit amount | enter a credit amount | |
enter an account title to record sale of bonds at a discount | enter a debit amount | enter a credit amount | ||
enter an account title to record sale of bonds at a discount | enter a debit amount | enter a credit amount | ||
(To record sale of bonds at a discount) | ||||
January 1, 2020December 31, 2020January 1, 2021 | enter an account title to record annual accrued bond interest and amortization of bond discount | enter a debit amount | enter a credit amount | |
enter an account title to record annual accrued bond interest and amortization of bond discount | enter a debit amount | enter a credit amount | ||
enter an account title to record annual accrued bond interest and amortization of bond discount | enter a debit amount | enter a credit amount | ||
(To record annual accrued bond interest and amortization of bond discount) | ||||
January 1, 2020December 31, 2020January 1, 2021 | enter an account title to record payment of bond interest liability | enter a debit amount | enter a credit amount | |
enter an account title to record payment of bond interest liability | enter a debit amount | enter a credit amount |
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