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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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GENERAL JOURNAL
PAGE
POST.
DATE
DESCRIPTION
REF.
DEBIT
CREDIT
1
20--
1
2 Jul.
2
3
4
4
5 20--
15
6 Jun.
30
6
7
8
8
9
9
10 20--
10
11 Jun.
30
11
12
12
13
13
14
14
15 20--
15
16 Jun.
30
16
17
17
18
18
19 20--
19
20 Jun.
30
20
21
21
22
22
23
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24
24
Transcribed Image Text:GENERAL JOURNAL PAGE POST. DATE DESCRIPTION REF. DEBIT CREDIT 1 20-- 1 2 Jul. 2 3 4 4 5 20-- 15 6 Jun. 30 6 7 8 8 9 9 10 20-- 10 11 Jun. 30 11 12 12 13 13 14 14 15 20-- 15 16 Jun. 30 16 17 17 18 18 19 20-- 19 20 Jun. 30 20 21 21 22 22 23 23 24 24
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
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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