Question

On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1.

Question 1 On January 1, 2017, Klosterman Company issued $400,000, 8%, 10-year bonds at face value. Interest is payable annually on January 1. Prepare the journal entry to record the issuance of the bonds. (Credit account tities are automatically indented when amount is ent Date Account Titles and Explanation Debit Credit Jan. 1, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented w Date Account Titles and Explanation Debit Credit Dec. 31, 2017

Answer 1

I credit Answers Journal Entry pate particulary cash Ale dr 2017 TO 8% bondy payable (Being to record issuance of sondy Ryoble) Debit $400,000 Jani, $400,000 credit pate Dec 31, 2017 Debit 1. $32,000 particulars Interest expenses All dr (400,000 x 87.) TO Interest poyable Being to recold accured interest) $ 32,000 Debit lere Teresit Date I particulars - Jan 1, 1 Interest payable Alc ar $ 32,000 2018 To cash Being to record payable of Interest) $32,000