Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On the first day of the fiscal year, a company issues a $920,000, 7%, 5-year bond that pays semiannual interest of $32,200 ($920,000 7% 1/2),

On the first day of the fiscal year, a company issues a $920,000, 7%, 5-year bond that pays semiannual interest of $32,200 ($920,000 7% 1/2), receiving cash of $884,174.

Required:
Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles.

Chart Of Accounts

CHART OF ACCOUNTS
General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
113 Allowance for Doubtful Accounts
114 Notes Receivable
115 Interest Receivable
121 Inventory
122 Supplies
131 Prepaid Insurance
140 Land
151 Building
152 Accumulated Depreciation-Building
153 Equipment
154 Accumulated Depreciation-Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
241 Notes Payable
242 Interest Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Goods Sold
511 Bad Debt Expense
512 Credit Card Expense
513 Cash Short and Over
521 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Rent Expense
535 Insurance Expense
536 Supplies Expense
551 Depreciation Expense-Building
552 Depreciation Expense-Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

General Journal

Journalize the entry to record the issuance of the bonds on July 1. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizational Behavior Improving Performance And Commitment In The Workplace

Authors: Jason Colquitt

8th Edition

126412435X, 9781264124350

More Books

Students also viewed these Accounting questions