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Journal Entries for Bond Transactions

This document contains a series of journal entries recording transactions related to a bond payable. It begins with an entry on 1/1/2009 debiting cash and crediting bond payable for $102,000 to record the issuance of a bond for $100,000 plus a $2,000 premium. Subsequent entries record periodic interest expense, increases to the premium and interest payable accounts, and payment of interest and principal on the bond over time until 1/1/2024 when the remaining balance is paid off.

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86 views1 page

Journal Entries for Bond Transactions

This document contains a series of journal entries recording transactions related to a bond payable. It begins with an entry on 1/1/2009 debiting cash and crediting bond payable for $102,000 to record the issuance of a bond for $100,000 plus a $2,000 premium. Subsequent entries record periodic interest expense, increases to the premium and interest payable accounts, and payment of interest and principal on the bond over time until 1/1/2024 when the remaining balance is paid off.

Uploaded by

cthunder_1
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Exercise

07.xls Step 2

Date a. 1/1/2009

Journal Entries Accounts Cash Premium of Bond payable Bond payable

Debit 102,000.00

Credit

2,000.00 100,000.00 2,433.33 66.67 2,500.00 2,500.00 2,500.00 2,433.33 66.67 2,500.00 2,500.00 2,500.00 2,433.33 66.67 2,500.00 100,000.00 100,000.00 2,500.00 2,500.00

b. 6/30/2009 Interest Expense Premium of Bond payable Interest payable c. 7/1/2009 Interest payable Cash d. 6/30/2023 Interest Expense Premium of Bond payable Interest payable e. 7/1/2023 Interest payable Cash f. 12/31/2023 Interest Expense Premium of Bond payable Interest payable g. 1/1/2024 Bond payable Cash Interest payable Cash

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