Question
Bonds Issued at a Premium Carlisle Corp. issued the following bonds at a premium: Date of issue and sale: April 1, 20-1 Principal amount: $430,000
Bonds Issued at a Premium
Carlisle Corp. issued the following bonds at a premium:
| Date of issue and sale: | April 1, 20-1 |
| Principal amount: | $430,000 |
| Sale price of bonds: | 104 |
| Denomination of bonds: | $1,000 |
| Life of bonds: | 20 years |
| Stated rate: | 10%, payable semiannually on September 30 and March 31 |
1. Prepare journal entries for:
a. Issuance of the bonds at a premium.
b. Interest payment and premium 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 premium.
b. Interest payment and premium 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.
| 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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Accounting
Authors: M.E. Thukaram Rao
3rd Edition
8122433820, 978-8122433821
