Bonds Issued at Face Value

R & R Collectibles issued the following bonds:

Date of issue and sale:	April 1, 20-1
Principal amount:	$400,000
Sale price of bonds:	100
Denomination of bonds:	$1,000
Life of bonds:	10 years
Stated rate:	8%, payable semiannually on September 30 and March 31

1. Prepare journal entries for:

a. Issuance of the bonds.

b. Interest payment 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.

b. Interest payment 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: blank

ROW NUMBER	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT	ROW NUMBER
1	a. 20-1 Apr. 1	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashCash	blank	blank	Cash	Cash	1
2	blank	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashBonds Payable	blank	blank	Bonds Payable	Bonds Payable	2
3	blank	blank	blank	blank	blank	blank	3
4	b. Sept. 30	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashBond Interest Expense	blank	blank	Bond Interest Expense	Bond Interest Expense	4
5	blank	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashCash	blank	blank	Cash	Cash	5
6	blank	blank	blank	blank	blank	blank	6
7	c. Dec. 31	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashBond Interest Expense	blank	blank	Bond Interest Expense	Bond Interest Expense	7
8	blank	Bond Interest ExpenseBond Interest PayableBond Interest ReceivableBonds PayableCashBond Interest Payable	blank	blank	Bond Interest Payable	Bond Interest Payable	8
9	blank	blank	blank	blank	blank	blank	9