Ellis & Co. issued the following bonds at a discount: Date of issue and sale: April 1, 20-1 Principal amount: $400,000 Sale price of bonds: 97 Denomination of bonds: $1,000 Life of bonds: 10 years Stated rate: 8%, payable semiannually on September 30 and March 31 Required: Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment and discount amortization on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Redemption of $50,000 of the bonds on April 1, 20-4, at 96

Ellis & Co. issued the following bonds at a discount: Date of issue and sale: April 1, 20-1 Principal amount: $400,000 Sale price of bonds: 97 Denomination of bonds: $1,000 Life of bonds: 10 years Stated rate: 8%, payable semiannually on September 30 and March 31 Required: Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment and discount amortization on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Redemption of $50,000 of the bonds on April 1, 20-4, at 96

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 2CE

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Date of issue and sale:	April 1, 20-1
Principal amount:	$400,000
Sale price of bonds:	97
Denomination of bonds:	$1,000
Life of bonds:	10 years
Stated rate:	8%, payable semiannually on September 30 and March 31

Similar questions

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	Prepare journal entries for:
(a)	Issuance of the bonds.
(b)	Interest payment and discount amortization on the bonds on September 30, 20-1.
(c)	Year-end adjustment on the bonds for 20-1.
(d)	Reversing entry for the beginning of 20-2.
(e)	Redemption of $50,000 of the bonds on April 1, 20-4, at 96.