Question
INSTRUCTIONS: Selected transactions of a corporation are listed below. For each transaction, indicate the account(s) to be debited and the account(s) to be credited by
INSTRUCTIONS: Selected transactions of a corporation are listed below. For each transaction, indicate the account(s) to be debited and the account(s) to be credited by inserting in the appropriate columns the letters that correspond to the accounts listed. (Do not record amounts.)
ACCOUNTS A.Bonds Payable F.Gain on Redemption of Bonds K.Loss on Sale of Investments B.Cash G.Interest Expense L.Premium on Bonds Payable C.Common Stock H.Interest Revenue M.Premium on Common Stock D.Discount on Bonds Payable I.Investment in Way Co. Bonds E.Dividend Revenue J.Loss on Redemption of Bonds
Debit Credit 1-2.Issued $1,000,000 of 10% bonds at an effective rate of 11%
3-4.Paid semiannual interest and amortized premium or discount on bonds issued in Question 1-2
5-6 Issued $1,000,000 of 12% bonds, at an effective rate of 11%
7-8 Paid semiannual interest and amortized premium or discount on bonds issued in Question 5-6
9-10 Issued $2,000,000 of 13% bonds, at an effective rate of 10%
11-12 .Paid semiannual interest and amortized premium or discount on bonds issued in Question 9-10
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