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Instructions On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year bond that pays semiannual interest of

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Instructions On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year bond that pays semiannual interest of $13,500 (5300,000 x 9% >year), receiving cash of $300,000 Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date or December 31 on page 11. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 Chart of Accounts CHART OF ACCOUNTS Designer Fabric Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petly Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds EXPENSES 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 194 Office Equipment 195 Accumulated Depreciation Office Equipment Chart of Accounts LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 541 Bad Debt Expense 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-in Capital in Excess of Par-Preferred Stock 331 Paid In Capital from Sale of Treasury Stock Journal Journalre the entries to record(a) the issuance of the bonds the first interest payment on June 30 on page 10, and I me payment of the price on the many date of December 3f on page 1 Refer to the Chart of Accounts for each wording of accounts PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTRE DE CH LABILITIES PAGE 1 JOURNAL ACCOUNTING FOLIATION DATE DESCRIPTION escuro POST IN DESIT CREDIT ASSETS LATES EDUITS Journal PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEN CRENT ASSETS LIABILITIES 1 2 3 4 WGE 1 JOURNAL ACCOUNTING EQUATION CREDET LIABILITIES ELITY POST REF DESCRIPTION DATE 1 2

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