NettetThe income statement for each of the 10 years would show Bond Interest Expense of $12,000 ($ 6,000 x 2 payments per year); the balance sheet at the end of each of the … NettetThe total par value of the bonds is $100,000 with an interest of 10% semiannually with a maturity of 5 years. From the example above, the total premium on bonds payable is …

Bond Premium Journal Entry Example - Accountinginside

NettetJournalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. ... A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267. NettetJournalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the ... A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267. arrow_forward. arrow_back_ios. SEE ... sebree clinic sebree ky

Worthington Mutual Insurance Company issued a $50,000, 5%, 10 …

NettetShort Answer. Journalizing bond transactions including retirement at maturity. McQueen Company issued a $100,000, 7.5%, 10-year bond payable. Journalize. the following. … NettetThe company also issued $100,000 of 5% bonds when the market rate was 7%. It received $91,800 cash and recorded a Discount on Bonds Payable of $8,200. This amount will need to be amortized over the 5-year life of the bonds. Using the same format for an amortization table, but having received $91,800, interest payments are being … Nettet2. jun. 2024 · ABC must then reduce the $100,000 discount on its bonds payable by a small amount during each of the accounting periods over which the bonds are outstanding, until the balance in the discount on bonds payable account is zero when the company has to pay back the investors. sebree architects inc