The board of directors of Allen Services Inc authorized the issuance of $400,000 face value, 20 year, 6 percent bonds dated April 1, 2019, and maturing on April 1, 2039 Interest is payable semiannually on April 1 and October 1 Allen uses the calendar year as its fiscal year The bond transactions that occurred in 2019 and 2020 follow DATE TRANSACTIONS FOR 2019 Apr 1 Issued $260,000 of bonds at face value Oct 1 Paid the semiannual interest on the bonds issued Dec 31 Recorded the adjusting entry for the accrued bond interest 31 Closed the Bond Interest Expense account to the Income Summary account DATE TRANSACTIONS FOR 2020 Jan 1 Reversed the adjusting entry made on December 31, 2019 Apr 1 Issued $140,000 of bonds at face value 1 Paid the interest for six months on the bonds previously issued Oct 1 Paid the interest for six months on the outstanding bonds Dec 31 Recorded the adjusting entry for the accrued bond interest 31 Closed the Bond Interest Expense account to the Income Summary account Required Record the transactions in general journal form Analyze Based on the transactions given, what is the balance in the Bonds Payable account on December 31, 2019

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Posted on Jul 29, 2024

The board of directors of Allen Services Inc. authorized the issuance of $400,000 face value, 20-year, 6 percent bonds dated April 1, 2019, and maturing

The board of directors of Allen Services Inc. authorized the issuance of $400,000 face value, 20-year, 6 percent bonds dated April 1, 2019, and maturing on April 1, 2039. Interest is payable semiannually on April 1 and October 1. Allen uses the calendar year as its fiscal year. The bond transactions that occurred in 2019 and 2020 follow.

DATE		TRANSACTIONS FOR 2019
Apr.	1	Issued $260,000 of bonds at face value.
Oct.	1	Paid the semiannual interest on the bonds issued.
Dec.	31	Recorded the adjusting entry for the accrued bond interest.
	31	Closed the *Bond Interest Expense* account to the *Income Summary* account.

DATE		TRANSACTIONS FOR 2020
Jan.	1	Reversed the adjusting entry made on December 31, 2019.
Apr.	1	Issued $140,000 of bonds at face value.
	1	Paid the interest for six months on the bonds previously issued.
Oct.	1	Paid the interest for six months on the outstanding bonds.
Dec.	31	Recorded the adjusting entry for the accrued bond interest.
	31	Closed the Bond Interest Expense account to the Income Summary account.

Required: Record the transactions in general journal form. Analyze: Based on the transactions given, what is the balance in the Bonds Payable account on December 31, 2019?