On April 30, year 1, a company issued $607,000 worth of 9% bonds
at par. The term of the bonds is 6 years, with interest payable
semi-annually on October 31st and April 30th. The year-end of the
company is November 30. Record the journal entries related to
interest for year 1, and year 2. Note that interest must be accrued
at the end of each year.
Do not enter dollar signs or commas in the input boxes.
Round your answers to the nearest whole dollar.
For transactions with more than one debit, enter the debit accounts
in alphabetical order.
| Date | Account Title and Explanation |
Debit | Credit |
| Oct 31 Y1 | AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | |
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| Payment of bond interest |
|||
| Nov 30 Y1 | AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | |
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| Accrued interest on bonds at year-end |
|||
| Apr 30 Y2 | AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | |
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| Payment of bond interest |
|||
| Oct 31 Y2 | AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | |
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| Payment of bond interest |
|||
| Nov 30 Y2 | AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | |
| AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseBonds PayableCashCommon StockCost of Goods SoldDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenueInventoryPremium on BondsPrepaid RentRent ExpenseSalaries ExpenseSales RevenueSupplies ExpenseTelephone ExpenseTravel ExpenseUnearned RevenueUtilities Expense |
Answer | ||
| Accrued interest on bonds at year-end |
|||
