semia Company issued 100000 4 10ear bonds payable at 98 on J

semia Company issued $100,000, 4%, 10-ear bonds payable at 98 on January 1, 2018. 6. Journalze the issuance of the bonds payable on January 1, 2018 7. Journa ue te payment or semannua merest and amonzaton ofthe bond dscount or premium aling te stignune imottaton mated on My 1 2011 Assume the bonds payable was instead issued at 106 Joumalize the issuance of the bonds payable and the payment of the rat semiannual nderest and amonzation of the bond discount or premum Record debits frst then credits Select explanations on the last line of the journal entry) 6. Journalze the issuance ofthe bonds payable on January 1,2018 Date Accounts and Explanation Debit Credit Jan 1 7. Journalbe me payment o, semiannuai interest and amontaton of P. bond dsoort or premium ??ng Pe sralghin. anota on method)on July 1, 2014 Date Accounts and Explanation Debit Credit Jul 1 &Assume; the bonds payable was instead issued at 106 Jourmalize the ssuance of the bonds payable and the payment of the rst semiannu interest and amortication of the bond dscount or premlum Start by jourmaliding the issuance of the bonds payable Date Accounts and Explanation Debil Credit Jan. 1 Now journalae the payment of the frat seiannual interest and amortizat on of the bond Accounts and Explanation Debit Credit Choose from any list or enter any number in the input helds and then continge to the next question

Solution

Date Accounts titile Dr Cr 1 Jan 1 Cash ($100000/$100 * $98) 98000 Discount on bonds payable 2000 To Bonds payable 100000 july 1 Interest expense [100000 * 4%/2] 2000 To Discount on bonds payable [2000/20 months] 100 To cash 1900 6 Jan 1 Cash ($100000/$100 * $106) 106000 To premium on bond payable 6000 To Bonds payable 100000 July 1 Interest expense [100000 * 4%/2] 2000 premium on bond payable[6000 / 20] 300 To cash 2300