Blossom Company sold $4,100,000, 5%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1, 2022 Date Dec. 31, 2022 Account Titles and Explanation Dec. 31, 2023 Cash Bonds Payable Premium on Bonds Payable Account Titles and Explanation Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Interest Expense Premium on Bonds Payable Interest Payable No Entry No Entry Interest Expense Premium on Bonds Payable Debit Interest Payable 4223000 Debit 192700 12300 192700 Credit 12300 4100000 123000 Credit 205 205

Blossom Company sold $4,100,000, 5%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Company uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1, 2022 Date Dec. 31, 2022 Account Titles and Explanation Dec. 31, 2023 Cash Bonds Payable Premium on Bonds Payable Account Titles and Explanation Prepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Interest Expense Premium on Bonds Payable Interest Payable No Entry No Entry Interest Expense Premium on Bonds Payable Debit Interest Payable 4223000 Debit 192700 12300 192700 Credit 12300 4100000 123000 Credit 205 205

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
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