2016
Sep.

1	Purchased equipment costing $ 270,000

by issuing a nine-year, 7% note payable. The note requires annual principal payments of $ 30,000 plus interest each Sep. 1

Dec. 31	Accrued interest on the note payable.
2017

Sep. 1 Paid the first installment on the note.

Dec. 31

Video Productions' total liabilities on December 31,

2017

?

Requirement 1. Journalize the transactions for the company.

Sep.

1,

2016

:

Purchased equipment costing

$ 270, 000 by issuing a nine year, 7% note payable. The note requires annual principal payments of $30,000 plus interest each

Sep.1. (Record debits first, then credits. Select explanations on the last line of the journal entry.)

________________________________________________________________

________________________________________________________________

On June 30, Driftwood Limited issues 7 %, 20-year bonds payable with a face value of

$ 70,000

The bonds are issued at 96 and pay interest on June 30 and December 31.

Requirements

1. Journalize the issuance of the bonds on June 30.

2. Journalize the semiannual interest payment and amortization of the bond discount on December 31.

(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry.)

_________________________________________________________________________

_____________________________________________________________________

.On January 1,

2016

,

Alan

Unlimited issues

12

%,

15

-year

bonds payable with a face value of

$ 230,000

.

The bonds are issued at

103

and pay interest on June 30 and December 31.

Requirements

1.

Journalize the issuance of the bonds on January 1, 2016 Journalize the semiannual interest payment and amortization of bond premium on June 30, 2016 Journalize the semiannual interest payment and amortization of bond premium on December 31 Journalize the retirement of the bond at maturity (give the date). (assume bonds payable are amortized using the straight-line amortization method. record debits, then cretids, Select expanations on the last line.

..

.
4.	Journalize the retirement of the bond at maturity. (Give the date.)

(Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry.)

Requirement 1. Journalize the issuance of the bonds on January 1,

2016

.

Date			Accounts and Explanation	Debit	Credit
2016
Jan. 1

_____________________________________________________________________________________

_______________________________________________________________________________________

Pediatric

Dispensary borrowed

$ 600,000 on January 2,2016

,

by issuing a 15 % serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2,2017

.

Complete the missing information. Assume bonds are issued at face value. (For accounts with a $0 balance, make sure to enter "0" in the appropriate cell.)

________________________________________________________________

___________________________________________________________________

S12B-16 (similar to)

On December 31,

,

when the market interest rate is 14%,Vincent Realty issues $ 500,000 of 15.25 %,10-year bonds payable. The bonds pay interest semiannually. Vincent Realty received $ 532,896 in cash at issuance.

Requirements

1.	Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
2.	Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.

Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)

		Interest		Carrying
	Cash Paid	Expense	Amortized	Amount
12/31/2016
06/30/2017
12/31/2017

	December 31
	2016	2017	2018

Current Liabilities:

Bonds Payable

Interest Payable

Long-Term Liabilities:

Bonds Payable

Requirement 1. Journalize the issuance of the bonds on June 30.

Date			Accounts and Explanation	Debit	Credit
Jun. 30

Date			Accounts and Explanation	Debit	Credit
2016
Sep. 1

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