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Presented below are selected transactions on the books of Buffalo Corporation. May 1, 2020 Dec. 31 Bonds payable with a par value of $915,600, which
Presented below are selected transactions on the books of Buffalo Corporation. May 1, 2020 Dec. 31 Bonds payable with a par value of $915,600, which are dated January 1, 2020. are sold at 105 plus accrued interest. They are coupon bonds, bear interest at 12% (payable annually at January 1), and mature January 1, 2030. (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Interest on the bonds is paid. Bonds with par value of $366,240 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized. Jan 1, 2021 April 1 Dec. 31 Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, eg. 1.251247 and final answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Cash Bonds Payable 915600 Premium on Bonds Payable Interest Expense ec 31, 2020 Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium) an. 1.2021 Interest Payable Cash 1. 2021 Bonds Payable 366,240 Interest Expense Premium on Bonds Payable Cash Gain on Redemption of Bonds ec 31, 2021 Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium)
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