The board of directors of Machine Shop, Inc., authorized the issuance of $1,000,000 face value, 10-year, 10 percent bonds dated April 1, 2019, and maturing on April 1, 2029. Interest is payable semiannually on April 1 and October 1.

DATE		TRANSACTIONS FOR 2019
Apr. 1		Issued $430,000 face value bonds at 101.2.
Oct. 1		Paid the semiannual interest on the outstanding bonds and amortized the bond premium. (Make two entries. Use the straight-line method to compute the amortization.)
Dec. 31		Recorded the adjusting entry for accrued interest and amortization of the bond premium for three months. (Make one entry.)
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.

Required:

1. Record the transactions below in general journal form.
2. Prepare the Long-Term Liabilities section of the corporations balance sheet on December 31, 2019.

Analyze: If the reversing entry was not recorded, what entry would be required when the interest expense is paid in April 2020?

Complete this question by entering your answers in the tabs below. General Balance Sheet Analyze Journal Record the transactions below in general journal form. View transaction list Journal entry worksheet 2 3 5 Issued $430,000 face value bonds at 101.20. Note: Enter debits before credits. Debit Date General Journal Credit Apr 01, 2019 Record entry Clear entry View general journal Journal entry worksheet 3 6 4 5 Record the payment of semiannual bond interest for the bond issued on April 1. Note: Enter debits before credits. Debit Credit Date General Journal Oct 01, 2019 Record entry Clear entry View general journal Journal entry worksheet 2 6 4 5 Record the amortization of the premium for the bond issued on April 1 Note: Enter debits before credits. General Journal Debit Credit Date Oct 01, 2019 Record entry View general journal Clear entry Journal entry worksheet 3 6 1 2 4 5 Recorded the adjusting entry for accrued interest and amortization of the bond premium for three months. Note: Enter debits before credits. Credit Date General Journal Debit Dec 31, 2019 Record entry Clear entry View general journal Journal entry worksheet 2 3 6. 1 4 Closed the Bond Interest Expense account to the Income Summary account. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2019 Record entry View general journal Clear entry Journal entry worksheet 2 3 6. 4 5 Reversed the adjusting entry made on December 31, 2019. Note: Enter debits before credits. Debit Date General Journal Credit Jan 01, 2020 Record entry Clear entry View general journal General Journal Balance Sheet Analyze Prepare the Long-Term Liabilities section of the corporation's balance sheet on December 31, 2019. MACHINE SHOP, INC. Partial Balance Sheet December 31, 2019 Long term liabilities: Net liability General Balance Sheet Analyze Journal If the reversing entry was not recorded, what entry would be required when the interest expense is paid in April 2020? View transaction list Journal entry worksheet Record the entry for interest expenses paid on bonds, if the reversing entry was not recorded. Note: Enter debits before credits. General Journal Credit Date Debit Apr 01, 2020 Record entry Clear entry View general journal