The following is list of accounts each represented by letter(s). AAccounts Payable ULoss from discontinued operationsBAccounts Receivable VLosses due to fireEAccumulated Depreciation-Equip WMerchandise InventoryFBonds Payable XNotes PayableGCash YPremium on Bonds PayableHCost of Goods Sold ZRent ExpenseICapital Lease Payable AARent RevenueJDiscount on Bonds Payable BBRetained EarningsKEquipment EESalaries and Wages PayableLFederal Income Tax Withheld Payable FFSales ReturnsMFederal Unemployment Taxes Payable GGSales RevenuesNFICA Taxes Payable HHSales Taxes PayableOIncome Summary IIShipping ExpensePIncome Taxes Payable JJState Income Tax Withheld PayableQInterest Expense KKState Unemployment Taxes PayableRInterest Payable LLSuppliesSLand MMTax ExpenseTLand Improvement NNUnearned Rent RevenueExample of Answer: G4000D,B2000D,GG5000C,HH1000CWhere G denotes Cash account, 4000 is the amount, D stands for debit, B denotes Accounts Receivable account, 2000 is the amount, D stands for debit, GG denotes Service Revenues, 5000 is the amount, and C stands for credit, HH denotes Sales Taxes Payable, 1000 is the amount, C stands for Credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts (in order of dollar amount – large amount to small amount), then the credit accounts (in order of dollar amount – large amount to small amount). Beauty Company issued $1,000,000, 4%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 6%. Provide journal entry for the first semiannual interest payment by the bond.

Payment of interest will be calculated on on coupon rate of 4% and market rate will not affect…

Answered: Beauty Company issued $1,000,000, 4%,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following is list of accounts each represented by letter(s).

A	Accounts Payable	U	Loss from discontinued operations
B	Accounts Receivable	V	Losses due to fire
E	Accumulated Depreciation-Equip	W	Merchandise Inventory
F	Bonds Payable	X	Notes Payable
G	Cash	Y	Premium on Bonds Payable
H	Cost of Goods Sold	Z	Rent Expense
I	Capital Lease Payable	AA	Rent Revenue
J	Discount on Bonds Payable	BB	Retained Earnings
K	Equipment	EE	Salaries and Wages Payable
L	Federal Income Tax Withheld Payable	FF	Sales Returns
M	Federal Unemployment Taxes Payable	GG	Sales Revenues
N	FICA Taxes Payable	HH	Sales Taxes Payable
O	Income Summary	II	Shipping Expense
P	Income Taxes Payable	JJ	State Income Tax Withheld Payable
Q	Interest Expense	KK	State Unemployment Taxes Payable
R	Interest Payable	LL	Supplies
S	Land	MM	Tax Expense
T	Land Improvement	NN	Unearned Rent Revenue

Example of Answer: G4000D,B2000D,GG5000C,HH1000C
Where G denotes Cash account, 4000 is the amount, D stands for debit, B denotes Accounts Receivable account, 2000 is the amount, D stands for debit, GG denotes Service Revenues, 5000 is the amount, and C stands for credit, HH denotes Sales Taxes Payable, 1000 is the amount, C stands for Credit. The letters are in capital. Comma is used to separate the changes in each account. Don’t use dollar sign, decimal point, or space in any place. If in an entry requires more than one debit or credit accounts, first enter debit accounts (in order of dollar amount – large amount to small amount), then the credit accounts (in order of dollar amount – large amount to small amount).

Beauty Company issued $1,000,000, 4%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 6%.
Provide journal entry for the first semiannual interest payment by the bond.

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