Question
On January 31, 2018, DurkinDurkin Logistics, Inc., issued five-year, 5% bonds payable with a face value of $5,000,000. The bonds were issued at 96 and
On January 31,
2018,
DurkinDurkin
Logistics, Inc., issued
five-year,
5%
bonds payable with a face value of
$5,000,000.
The bonds were issued at
96
and pay interest on January 31 and July 31.
DurkinDurkin
Logistics amortizes bond discounts using the straight-line method.Read the requirement
a. Record the issuance of the bond payable on January 31,
2018.
(Record debits first, then credits. Exclude explanations from any journal entries.)
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| Date | Accounts | Debit | Credit | |
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| Jan | 31 |
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b. Record the payment of semiannual interest and amortization of bond discount on July 31,
2018.
| Journal Entry | ||||
| Date | Accounts | Debit | Credit | |
|---|---|---|---|---|
| July | 31 |
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c. Record the interest accrual and discount amortization on December 31,
2018.
(Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole dollar.)
| Journal Entry | ||||
| Date | Accounts | Debit | Credit | |
|---|---|---|---|---|
| Dec | 31 |
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