Issuing bonds at a discount Instructions Chart of Accounts Journal HI Instructions On January 1, the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays semiannual interest of $80,000 ($2,500,000 *** **), receiving cash of $2,300,609 Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account bites CHART OF ACCOUNTS General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 515 Credit Card Expense 131 Merchandise Inventory 141 Office Supplies 516 Cash Short and Over 191 Land 522 Office Salaries Expense 194 Office Equipment 195 Accumulated Depreciation Office Equipment 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense LIABILITIES 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 541 Bad Debt Expense 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds 232 nterest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 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 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary Journal Journalize the bond issuance. Refer to the Chart of Accounts for a Journal Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account sites JOURNAL PAGE 10 DATE ACCOUNTING EQUATION DESCRIPTION 1 POST RER DEBIT CREDIT ASSETS LIABILITIES EQUITY 2 1