Question

Problem 10-4A (Part Level Submission) On October 1, 2016, Bridgeport Corp. issued $756,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Oct. 1, 2016 Cash 756,000 1 Bonds Payable 756,000 Click if you would like to Show Work for this question: Open Show Work

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Requirement Credit Date' Oct 1,2016 Accounts Title and Explaination Cash Bonds Payable Debit $ 756,000.00 $ 756,000.00 (To Record issued of bonds payable) Since Bonds are issued at october. At Year end an adjusting entry should be passed for accrual of interest expense Credit Date' Dec 31,2016 Accounts Title and Explaination Interest Expense Interest payable Debit $ 9,450.00 $ 9,450.00 (To Record adjusting entry at year end) Balance Sheet Presentation : सी 9,450.00 Current liabilities : Interest Payable Long term Liabilities : Bonds payable 756,000.00 Journal entry to Record the payment of interest on October 1 2017 Date' Dec 31, 2017 Credit Accounts Title and Explaination Interest Expense Interest Payable Cash Debit $ 28,350.00 $ 9,450.00 $ 37,800.00 (To Record payment of interest)