The Colson Company issued 362000 of 9 bonds on January 1 201

The Colson Company issued $362,000 of 9% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds were issued at 102.

Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Colson Company records straight-line amortization semiannually. (If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

January 1, 2014

July 1, 2014

December 31, 2014

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	January 1, 2014	$\"\"$	$\"\"$	$\"\"$
		$\"\"$	$\"\"$	$\"\"$
		$\"\"$	$\"\"$	$\"\"$
(b)	July 1, 2014	$\"\"$	$\"\"$	$\"\"$
		$\"\"$	$\"\"$	$\"\"$
		$\"\"$	$\"\"$	$\"\"$
(c)	December 31, 2014	$\"\"$

Journal entry :

Date	accounts & explanation	debit	credit
Jan 1,2014	Cash (362000*1.02)	369240
	Bonds payable		362000
	Premium on bonds payable		7240
	(To record bond issue)

July 1,2014	Interest expense	15687
	Premium on bonds payable (7240/12)	603
	Cash (3620009%6/12)		16290
	(To record interest)

Dec 31,2014	Interest expense	15687
	Premium on bonds payable	603
	Interest payable		16290
	(To record interest)

The Colson Company issued $362,000 of 9% bonds on January 1, 2014. The bonds are due January 1, 2020, with interest payable each July 1 and January 1. The bonds

The Colson Company issued 362000 of 9 bonds on January 1 201

Solution

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