On October 1, 2009, Jack Company issued a $5,000, 6%, bond payable. The interest is payable annually each September 30 and the bond matures in five years. The annual accounting period for the company ends December 31. Complete the following entries at the date specified under three different assumptions as to the issue price. Use straight-line amortization. Assume no adjusting entries have been made during the year. SHOW YOUR WORK! October 1.20X1 Cash: Bond Discount: Bond Premium: Bonds Payable Record adjusting entry:December 31,20X1 Bonds Interest Expense: Bond Discount: Bond Premium: Bond Interest Payable: Record Interest Payment: Oct 1,20X2 Bonds Interest Expense: Bonds Interest Payable: Bond Discount: Bond Premium: Cash:

bond market rate is the same 8) On October 1, 20x1, Britt Company issued a $5,000, 6%, bond payable. The interest is payable annually each October 1 and the bond matures in five years The annual accounting period for the company ends December 31. Complete the following entries at the date specified under three different assumptions as to the issue price. Use straight-line amortization, @ 94 5% Debit Credit @ 106 Debit Credit Assumed Issue Price @par Entry Debit Credit Record Issuance: October 1, 20X1 Cash Bond Discount Bond Premium Bonds Payable Record adjusting entry: December 31, 20X1 Bond interest expense Bond discount Bond premium Bond interest payable Record Interest Payment: October 1, 20X2 Bond interest expense Bond interest payable Bond discount Bond premium Cash