Bonds Payable Journal Entries; Straight-Line Interest Amortization On December 31, Brown Company issued $400,000 of 20-year, eight percent bonds payable for $331,364, yielding an effective interest rate of ten percent. Interest is payable semiannually on June 30 and December 31. Prepare journal entries to reflect (a) the issuance of the bonds, (b) the semiannual interest payment and discount amortization (straight-line interest method) on June 30, and (c) the semiannual interest payment and discount amortization on December 31.  Round answers to the nearest dollar.   General Journal   Date Description Debit Credit (a) 12/31/Y1 Cash Answer Answer     Answer Answer Answer     Answer Answer Answer     To record issuance of bonds at a discount.     (b) 06/30/Y2 Answer Answer Answer     Answer Answer Answer     Cash Answer Answer     To record semiannual payment and discount amortization.     (c) 12/31/Y2 Answer Answer Answer     Answer Answer Answer     Cash Answer Answer     To record semiannual payment and discount amortization.

Entries for Bonds Payable and Installment Note Transactions The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1   July 1. Issued $5,110,000 of five-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $4,742,651. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $120,000 by issuing a 10-year, 7% installment note to Nicks Bank. The note requires annual payments of $17,085, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $2,100 of interest on the installment note. The interest is payable on the date of the next installment note payment.  31. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest payment. Year 2   June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $36,735 is combined with the semiannual interest…

Subject :- Account

Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $8,500,000 of 8-year, 6% bonds at a market (effective) interest rate of 4%, receiving cash of $9,654,106. Interest is payable semiannually on April 1 and October 1. a.  Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank.   Cash  fill in the blank  fill in the blank    Premium on Bonds Payable  fill in the blank  fill in the blank    Bonds Payable  Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense  fill in the blank  fill in the blank    Premium on Bonds Payable  fill in the blank  fill in the…