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The Blue Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 104. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blue Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

The Blue Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 104. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blue Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...
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The Blue Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 104. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blue Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date 1, 2020 /1, 2020 . 31, 2020 Account Titles and Explanation cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Cash Interest Expense Depreciation Expense Interest Payable Debit 312000 16200 16200 Credit 300000 12000 1200 15000 1200 15000
Transcribed Image Text:The Blue Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 104. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Blue Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date 1, 2020 /1, 2020 . 31, 2020 Account Titles and Explanation cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Cash Interest Expense Depreciation Expense Interest Payable Debit 312000 16200 16200 Credit 300000 12000 1200 15000 1200 15000
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