Question
Ramona Arroyo Co. issued the following bonds: Date of issue and sale: April 1, 20-1 Principal amount: $250,000 Sale price of bonds: 100 Denomination of
Ramona Arroyo Co. issued the following bonds:
| Date of issue and sale: | April 1, 20-1 |
| Principal amount: | $250,000 |
| Sale price of bonds: | 100 |
| Denomination of bonds: | $5,000 |
| Life of bonds: | 10 years |
| Stated rate: | 9%, payable semiannually on September 30 and March 31 |
Required:
| Prepare journal entries for: | |
| (a) | Issuance of the bonds. |
| (b) | Interest payment on the bonds on September 30, 20-1. |
| (c) | Year-end adjustment on the bonds for 20-1. |
| (d) | Reversing entry for the beginning of 20-2. |
| (e) | Interest payments on the bonds for 20-2 (March 31 and September 30). |
| (f) | Redemption at maturity.
|
| Prepare journal entries for: | |
| (a) Issuance of the bonds. | |
| (b) Interest payment on the bonds on September 30, 20-1. | |
| (c) Year-end adjustment on the bonds for 20-1. |
General Journal Instructions
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
| 1 |
|
|
|
|
|
| 2 |
|
|
|
|
|
| 3 |
|
|
|
|
|
| 4 |
|
|
|
|
|
| 5 |
| Adjusting Entries |
|
|
|
| 6 |
|
|
|
|
|
| 7 |
|
|
|
|
|
| Prepare journal entries for: | |
| (d) Reversing entry for the beginning of 20-2. | |
| (e) Interest payments on the bonds for 20-2 (March 31 and September 30). |
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
| 1 |
| Reversing Entries |
|
|
|
| 2 |
|
|
|
|
|
| 3 |
|
|
|
|
|
| 4 |
|
|
|
|
|
| 5 |
|
|
|
|
|
| 6 |
|
|
|
|
|
| 7 |
|
|
|
|
|
| (f) Prepare journal entry for redemption at maturity. |
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
| 1 |
|
|
|
|
|
| 2 |
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Your Human Resources Department A Step By Step Guide To Assessing The Key Areas Of Your Program
Authors: John H. McConnell
2nd Edition
0814416616, 978-0814416617
