Question

On January 1, 2017, Pigwell Company issued $300,000 of 5% bonds for $644,636. The bonds mature...

On January 1, 2017, Pigwell Company issued $300,000 of 5% bonds for $644,636. The bonds mature in 10 years. Interest is payable each July 1 and January 1. The company uses the straight-line interest amortization method.

Instructions

Record the journal entry on January 1, 2017 and July 1, 2017.

Computations:

Journal Entry:

Date

Account Title

Debit

Credit
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Homework Answers

Answer #2
Date   Account Title Debit ($) Credit ($)
Jan-01-2017 Cash A/c               644,636
        To Premium on Bond Payable A/c [$644,636 - $300,000]               344,636
        To Bonds Payable A/c               300,000
[Journal Entry to record the issuance of Bond on Jan-01-2017]
answered by: anonymous
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