Exercise 1020 Adcock Company issued 600000 9 20year bonds on

Exercise 10-20

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2019, at 103. Interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount.

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2039

Exercise 10-20

Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2019, at 103. Interest is payable annually on January 1. Adcock uses straight-line amortization for bond premium or discount.

$\"\"$

Journal entry :

(To record bond redemption)

Date	accounts & explanation	debit	credit
Jan 1	Cash (600000*1.03)	618000
	Bonds payable		600000
	Premium on bonds payable		18000
	(To record bond issue)

Dec 31	Interest expense	53100
	Premium on bonds payable (18000/20)	900
	Interest payable (600000*9%)		54000
	(To record accured interest)

Jan 1	Interest payable	54000
	Cash		54000
	(To record interest paid)

Jan 1,2039	Bonds payable	600000
	Cash		600000
	(To record bond redemption)

Exercise 10-20 Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2019, at 103. Interest is payable annually on January 1. Adcock uses straight-lin

Exercise 1020 Adcock Company issued 600000 9 20year bonds on

Solution

Get Help Now

Submit a Take Down Notice