Question

Journal entries

During two consecutive years, Antlers Company, Inc., completed the following transactions: Year 1 June 1 Issued $750,000 face value, 20-year, 12 percent bonds, dated June 1 of this year, at 103. Interest is payable semiannually on December 1 and June 1. Paid semiannual interest on the bonds. Dec. 1 Recorded an adjusting entry for accrued interest payable. 31 Recorded an adjusting entry for amortization of premium on bonds. 31 31 Closed the Interest Expense account. Year 2 Reversed the adjusting entry for accrued interest payable. Paid semiannual interest on the bonds. Paid semiannual interest on the bonds. Recorded an adjusting entry for accrued interest payable. 31 Jan. 1 June 1 Dec. 1 June 31 Recorded an adjusting entry for amortization of premium on bonds. 31 Closed the Interest Expense account.

Answer 1

Solution - Jounde enero Journal Entries los latest Yeai 1 postabos Debit Credit Dune I Cash S oy ! $778500 Bonds Payable $759000 con premium on Bonds: contrł $2,500 . (To record bonds issue ? at premium je sada broj te Decl Interest Expense on suurem Cash (To record interest Expense in Bu semiannualy = ('750000 X 12.7.X01 01X36/2)5(Adcolo) Dec 31 Interest Expense pour 500 Los Interest Payable $7,500 (To record interest Payabletes y con i one month= 150000 22:7-x1112) Deczi Premium on Bonds payable, $94) T Interest Expense ne $94 amortization amount to one month = 22 500/40 = 583/16. m irani te je Ded 31 Ded 31 Income Summary b/ of $51883 $51883 Income fummü 1. Interest Expenses To Wecord closing Entues of ? Income Expejc 7 po + prel Income Expansio n

Year 2 & Jan I Interest Payable $7,500 Interest Expense Reversed the adjusting ] endly for interest payable) $7 June interest Expense of $44,477 - Cash To record interest expense to ( Paidd semiammually = 450c0-593 ) Desoto $4947 1. Interest Pantai $7,500 Decal . Interest Expense aratat k g44477 Cast Ir $4447 To record interest Expense paid, semiannualy] cope worst ot 87.500 June 3l Interest Expense s 1 Interest, Payable stron $7.500 1 (to record ont expense for one month from a winnat urt Jun I to Tume 31 June 31 Premium on Borels - $94. . Interest Expense to record amortization amt for one month Jon June 31 Anemone gincome Summary of $44477, $44,47 394 June 31 Interst exper [Being Expense of amount Cile to Income surronaly af enta ,

on June 31 Debit Explanation of goderest Expense af Credit Tan I To Premium on bonds qu Jan I By ant 150 Payable June 31 To Cash - Jungl Premium on qu June 31 to Int payable 7,500 Jun31 ! Jun31 By Income 44,47 - Summary 49,477 Payable =