Question
25. Please answer the below. Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2011, Daggett Company issued $900,000 of ten-year, 9% bonds payable
25. Please answer the below.
Bonds Payable Journal Entries; Effective Interest Amortization On December 31, 2011, Daggett Company issued $900,000 of ten-year, 9% bonds payable for $830,656, yielding an effective interest rate of 10%. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (effective interest method) on June 30, 2012, and (c) the semiannual interest payment and discount amortization on December 31, 2012. Round amounts to the nearest dollar.
General Journal | |||
---|---|---|---|
Date | Description | Debit | Credit |
a.) | |||
Dec.31 | Cash | $Answer Incorrect 0.00 points out of 1.00 | $Answer Correct 1.00 points out of 1.00 |
AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | |
AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Incorrect 0.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
To record issuance of bonds. | |||
b.) | |||
Jun.30 | AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 |
AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
Cash | Answer Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
To record semiannual interest payment and discount amortization. | |||
c.) | |||
Dec.31 | AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 |
AnswerCashDiscount on Bonds PayableBonds PayableBond Interest Expense Correct 1.00 points out of 1.00 | Answer Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
Cash | Answer Correct 1.00 points out of 1.00 | Answer Incorrect 0.00 points out of 1.00 | |
To record semiannual interest payment. |
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