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.

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2