Question
The Colson Company issued $300,000 of 10% bonds on January 1, 2030. The bonds are due January 1, 2035, with interest payable each July 1
The Colson Company issued $300,000 of 10% bonds on January 1, 2030. The bonds are due January 1, 2035, with interest payable each July 1 and January 1. The bonds were issued at 98.
Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
No. | Date | Account titles and explanation | Debit | credit |
---|---|---|---|---|
a | Jan. 1 | Cash | ? | ? |
? | ? | ? | ||
? | ? | ? | ||
b | July 1 | Interest expense | ? | ? |
Cash | ? | ? | ||
? | ? | ? | ||
c | Dec. 31 | Interest expense | ? | ? |
Interest payable | ? | ? | ||
? | ? | ? |
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