Beilkes Supply Stores issued the following bonds at a discount:

Date of issue and sale:	April 1, 20-1
Principal amount:	$400,000
Sale price of bonds:	97
Denomination of bonds:	$1,000
Life of bonds:	20 years
Stated rate:	8%, payable semiannually on September 30 and March 31

Required:

	Prepare journal entries for:
	(a) Issuance of the bonds at a discount.
	(b) Interest payment and discount amortization on the bonds on September 30.
	(c) Year-end adjustment on the bonds.

CHART OF ACCOUNTSBeilkes Supply StoresGeneral Ledger

	ASSETS
101	Cash
122	Accounts Receivable
141	Supplies
181	Office Equipment

	LIABILITIES
202	Accounts Payable
219	Wages Payable
252	Bonds Payable
252.1	Discount on Bonds Payable
253	Bond Interest Payable

	EQUITY
321	Common Stock
322	Paid-In Capital in Excess of Par-Common Stock
329	Paid-In Capital from Sale of Treasury Stock
331	Retained Earnings
333	Cash Dividends

	REVENUE
401	Sales

	EXPENSES
511	Wages Expense
512	Advertising Expense
513	Bank Credit Card Expense
514	Store Supplies Expense
515	Travel and Entertainment Expense
549	Miscellaneous Expense
550	Bond Interest Expense

(a) Prepare journal entries for the issuance of the bonds at a discount.

General Journal Instructions

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3

(b) Prepare journal entries for the interest payment and discount amortization on the bonds on September 30.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3

(c) Prepare journal entries for the year-end adjustment on the bonds.

PAGE 1

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4