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Type or paste question here On January 1, 2017, Tamarisk Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July
Type or paste question here
On January 1, 2017, Tamarisk Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
| (a) | The issuance of the bonds. | |
| (b) | The payment of interest on July 1. | |
| (c) | The accrual of interest on December 31. |
| Date | Account Titles and Explanation | Debit | Credit | |
| a | choose a transaction date | enter an account title to record the issuance of the bonds | enter a debit amount | enter a credit amount |
| enter an account title to record the issuance of the bonds | enter a debit amount | enter a credit amount | ||
| b | choose a transaction date | enter an account title to record the payment of interest | enter a debit amount | enter a credit amount |
| enter an account title to record the payment of interest | enter a debit amount | enter a credit amount | ||
| C | choose a transaction date | enter an account title to record the accrual of interest | enter a debit amount | enter a credit amount |
| enter an account title to record the accrual of interest | enter a debit amount | enter a credit amount |
On April 1, 2017, Carla Vista Company issued $930,000 of 11%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
| (a) | The issuance of the bonds. | |
| (b) | The payment of interest on July 1. | |
| (c) | The accrual of interest on December 31. |
| Date | Account Titles and Explanation | Debit | Credit | |
| a | choose a transaction date | enter an account title to record the issuance of the bonds. | enter a debit amount | enter a credit amount |
| enter an account title to record the issuance of the bonds. | enter a debit amount | enter a credit amount | ||
| enter an account title to record the issuance of the bonds. | enter a debit amount | enter a credit amount | ||
| b | choose a transaction date | enter an account title to record the payment of interest | enter a debit amount | enter a credit amount |
| enter an account title to record the payment of interest | enter a debit amount | enter a credit amount | ||
| c | choose a transaction date | enter an account title to record the accrual of interest | enter a debit amount | enter a credit amount |
| enter an account title to record the accrual of interest |
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
978-1259222139
