Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i give thumbs up to people who put dates in:) On the first day of the fiscal year, a company issues a $1,000,000,7%, five-year bond

i give thumbs up to people who put dates in:)
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
On the first day of the fiscal year, a company issues a $1,000,000,7%, five-year bond that pays semiannual interest of $35,000($1,000,000761/2), recelving cash of $884,171. Required: Joumaize the enty to record the issuasce of the bonds. Aefor to the Chart of Accounts for exact wording of account bives. ASSETS REVENUE 110 Cash 410 Sales 111. Petty Cash 610 Interest Revenue 112 Accounts Receivable 611 Gain on Redemption of Bonds 113 Allowance for Doubtful Accounts 114 Notes Receivable EXPENSES 115 Interest Receivable 510 Cost of Merchandise Sold 121 Merchandise Inventory 511 Bad Debt Expense 122 Supplies 512 Credit Card Expense 131 Prepaid Insurance 513 Cash Short and Over 140 Land 521 Salaries Expense 151 Bullding 531 Advertising Expense 152 Accumulated Depreciation-Building 532 Delivery Expense 153 Equipment 533 Repairs Expense 154 Accumulated Depreciation-Equipment 534 Rent Expense 535 Insurance Expense LIABILITIES 536 Supplies Expense. 210 Accounts Payable 551 Depreciation Expense-Bullding In: Chart Of Accounts 154 Accumulated Depreciation-Equipment 534 Rent Expense 535 Insurance Expense LIABILITIES 536 Supplies Expense 210 Accounts Payable 551 Depreciation Expense-Building 221 Salaries Payable 552 Depreciation Expense-Equipment 231 Sales Tax Payable 590 Miscellaneous Expense 241 Notes Payable 710 Interest Expense 242 Interest Payable 711 Loss on Redemption of Bonds 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Journalize the entry to record the issuance of the bonds on July 1 . Fefer to the Chart of Accounts for exact wording of account tites

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Control And Audit

Authors: Angel R. Otero

5th Edition

1498752284, 9781498752282

More Books

Students also viewed these Accounting questions

Question

4. A biased coin with probability p, 0 Answered: 1 week ago

Answered: 1 week ago

Question

Explain the seven dimensions of an organizations climate.

Answered: 1 week ago

Question

Describe the five types of change.

Answered: 1 week ago