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Mellilo Corporation issued $5,300,000 of 20-year, 9.5 percent bonds on July 1, 2009, at 98. Interest is due on June 30 and December 31 of
Mellilo Corporation issued $5,300,000 of 20-year, 9.5 percent bonds on July 1, 2009, at 98. Interest is due on June 30 and December 31 of each year, and all of the bonds in the issue mature on June 30, 2029. Mellilo's fiscal year ends on December 31. Prepare the following journal entries: |
a. | July 1, 2009, to record the issuance of the bonds. |
b. | December 31, 2009, to pay interest and amortize the bond discount. |
c. | June 30, 2029, to pay interest, amortize the bond discount, and retire the bonds at maturity (make two separate entries). |
(Omit the "$" sign in your response.) |
2009 | ||||
July 1 | (Click to select)Bonds Payable Interest Expense Accounts PayableCashDiscount on Bonds Payable | |||
(Click to select)Discount on Bonds Payable Bonds Payable CashInterest Expense Accounts Payable | ||||
(Click to select)Bond Interest ExpenseDiscount on Bonds PayableInterest expenseBonds PayableCash | ||||
To record issuance of bonds at 98. | ||||
2009 | ||||
Dec. 31 | (Click to select)CashBond Interest ExpenseBonds PayableAmortization ExpenseDiscount on Bonds Payable | |||
(Click to select)Accounts PayableCashInterest Expense Discount on Bonds Payable Bonds Payable | ||||
(Click to select)Interest Expense CashDiscount on Bonds Payable Bonds Payable Accounts Payable | ||||
To pay interest and amortize bond discount: | ||||
Semiannual interest payment | ||||
$ |
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