Question

Concord Corporation sold $2,950,000, 9%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Concord Corporation uses the straight-line method to amortize bond premium or discount.

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 103. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount

Prepare journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 96. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1	enter a debit amount	enter a credit amount
Dec. 31	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31	enter a debit amount	enter a credit amount

(1) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 103 selling price.

CONCORD CORPORATION Balance Sheet (Partial) choose the accounting period                                                                      December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
select an opening name for subsection one                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item					$enter a dollar amount
select an opening name for subsection two                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$enter a dollar amount
select between addition and deduction                                                                      AddLess: enter a balance sheet item			enter a dollar amount		enter a total of the two previous amounts

(2) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 96 selling price.

CONCORD CORPORATION Balance Sheet (Partial) choose the accounting period                                                                      December 31, 2022For the Month Ended December 31, 2022For the Year Ended December 31, 2022
select an opening name for subsection one                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item					$enter a dollar amount
select an opening name for subsection two                                                                      Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$enter a dollar amount
select between addition and deduction                                                                      AddLess: enter a balance sheet item			enter a dollar amount

Answer 1

At 103:
		Debit	Credit
Jan 1	Cash	3038500		=2950000*1.03
	Bonds Payable		2950000
	Premium on Bonds Payable		88500
Dec 31	Interest expense	247800
	Premium on Bonds Payable	17700		=88500/5
	Interest payable		265500	=2950000*9%
At 96:
		Debit	Credit
Jan 1	Cash	2832000		=2950000*0.96
	Discount on Bonds Payable	118000
	Bonds Payable		2950000
Dec 31	Interest expense	289100
	Discount on Bonds Payable		23600	=118000/5
	Interest payable		265500	=2950000*9%
1
	CONCORD CORPORATION
	Balance Sheet (Partial)
	December 31, 2022
	Current Liabilities
	Interest payable		265500
	Long term liabilities
	Bonds payable	2950000
	Add: Premium on Bonds payable	70800	3020800	=88500-17700
2
	CONCORD CORPORATION
	Balance Sheet (Partial)
	December 31, 2022
	Current Liabilities
	Interest payable		265500
	Long term liabilities
	Bonds payable	2950000
	Less: Discount on Bonds payable	94400	2855600	=118000-23600