Halsey Corporation had the following bond transactions during the fiscal year 2019: On January 1: issued twenty
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Question:
Halsey Corporation had the following bond transactions during the fiscal year 2019:
- On January 1: issued twenty $20,000 bonds at 101. The 5-year bonds are dated January 1, 2019. The contract interest rate is 3%. Straight-line amortization method is used. Interest is payable semi-annual on January 1 and July 1.
- On July 1: Halsey Corporation issued $600,000 of 5%, 10-year bonds. The bonds dated January 1, 2019 were issued at 95, and pay interest on July 1 and January 1.Straight-line amortization method is used.
- On October 1: issued 10-year bonds $10,000 face value bonds, for $11,500 cash. The bonds have a stated rate of 4%. Straight-line amortization method is used. Interest is payable on October 1 and April 1.
What would the general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2019 year be?
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