D E F G H I J K L M N O P Q R S CASH 123- ALT-BOND-DISC-AMORT DATE GENERAL JOURNAL (USE Dropdowns) DEBIT CREDIT Date 4 1 1/1/17 CASH 96,000 5 2 6 3 DISCOUNT ON BONDS PAYABLE BONDS PAYABLE 7 4 8 5 9 6 10 7 12/31/17 BOND INTEREST EXPENSE DISCOUNT ON BONDS PAYABLE CASH Transaction 1/1/17 Jackson Company issued $210,000 of bonds at a price of 96.00% of face value. The bonds have a maturity of 3 years and an interest rate of 5.00% with annual interest payments. (Use dropdowns to see the accounts in the journal) 12/31/17 Make the first interest entry and amortize a portion of the bond discount. 11 8 12 9 12/31/18 BOND INTEREST EXPENSE 12/31/18 Make the second interest entry. 13 10 14 11 DISCOUNT ON BONDS PAYABLE CASH 15 12 16 13 17 14 18 15 12/31/19 BOND INTEREST EXPENSE DISCOUNT ON BONDS PAYABLE CASH 12/31/19 Make the third interest entry. 19 16 20 17 12/31/19 BONDS PAYABLE 21 18 CASH 12/31/19 Make the entry to pay off the face amount of the bonds at the end of year 3. 22 19 23 20 24 T U BONDS PAYABLE DISCOUNT ON BONDS PAYABLE PREMIUM ON BONDS PAYABLE BOND INTEREST EXPENSE