Bonds Issued at a Discount

Seattle Sales Corp. issued the following bonds at a discount:

Date of issue and sale:	April 1, 20-1
Principal amount:	$540,000
Sale price of bonds:	98
Denomination of bonds:	$1,000
Life of bonds:	10 years
Stated rate:	7%, payable semiannually on September 30 and March 31

1. 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.

If an amount box does not require an entry, leave it blank.

1. 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.

If an amount box does not require an entry, leave it blank.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	a. 20-1 Apr. 1						1
2							2
3							3
4							4
5	b. Sept. 30						5
6							6
7							7
8							8
9	c. Dec. 31						9
10							10
11							11