FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:GENERAL JOURNAL
PAGE
POST.
DATE
DESCRIPTION
REF.
DEBIT
CREDIT
1
20--
1
2 Jul.
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4
5 20--
15
6 Jun.
30
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9
10 20--
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11 Jun.
30
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12
13
13
14
14
15 20--
15
16 Jun.
30
16
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19 20--
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20 Jun.
30
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Transcribed Image Text:PA5. 13.3 Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term
on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using
the straightline method. Prepare journal entries for the following transactions.
A. July 1, 2018: entry to record issuing the bonds
B. June 30, 2019: entry to record payment of interest to bondholders
C. June 30, 2019: entry to record amortization of premium
D. June 30, 2020: entry to record payment of interest to bondholders
E. June 30, 2020: entry to record amortization of premium
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