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Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 104 Life of bonds: 10
Island Cove Corporation had the following bond issue:
| Date of issue/sale: | May 1, 20-A |
| Principal: | $500,000 |
| Sale price of bonds: | 104 |
| Life of bonds: | 10 years |
| Stated rate: | 6% a year payable semiannually on October 31 and April 30 |
Required:
Prepare the following general journal entries.
a. The issuance of the bonds on May 1, 20-A.
b. The first interest payment for 20-A.
c. The adjusting entry for December 31, 20-A.
d. The reversing entry for January 1, 20-B.
If an amount box does not require an entry, leave it blank. Please no script
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | a. May 1 | 1 | ||||
| 2 | 2 | |||||
| 3 | 3 | |||||
| 4 | 4 | |||||
| 5 | b. Oct. 31 | 5 | ||||
| 6 | 6 | |||||
| 7 | 7 | |||||
| 8 | 8 | |||||
| 9 | c. Dec. 31 | 9 | ||||
| 10 | 10 | |||||
| 11 | 11 | |||||
| 12 | 12 | |||||
| 13 | d. Jan. 1 | 13 | ||||
| 14 | 14 | |||||
| 15 | 15 |
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