Bonds Issued at Face Value

Ito Co. issued the following bonds:

Date of issue and sale:	April 1, 20-1
Principal amount:	$300,000
Sale price of bonds:	100
Denomination of bonds:	$5,000
Life of bonds:	5 years
Stated rate:	6%, payable semiannually on September 30 and March 31

Required:

Prepare journal entries for the transactions below. please fill in all the missing blanks and show all work.

- Interest payment on the bonds on September 30, 20-1.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Sept. 30	Bond Interest Expense			fill in the blank	fill in the blank
2		Cash			fill in the blank	fill in the blank

-Year-end adjustment on the bonds for 20-1.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-1 Dec. 31	Bond Interest Expense			fill in the blank	fill in the blank
2		Bond Interest Payable			fill in the blank	fill in the blank

-Reversing entry for the beginning of 20-2.

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-2 Jan. 1	Bond Interest Payable			fill in the blank	fill in the blank
2		Bond Interest Expense			fill in the blank	fill in the blank

-Interest payments on the bonds for 20-2 (March 31 and September 30).

Page:

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-2 Mar. 31	Bond Interest Expense			fill in the blank	fill in the blank
2		Cash			fill in the blank	fill in the blank
3	Sept. 30	Bond Interest Expense			fill in the blank	fill in the blank
4		Cash			fill in the blank	fill in the blank