Question

Chapter 10 Exercise A Help Save & Exit Submit Check my work Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $1,700,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31 0.71 points 1. Record the entry for the issuance of bonds for cash on January 1 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded). View transaction list Journal entry worksheet < 3 Record the cash paid for the second semiannual interest payment on December 31. Note: Enter detits before credits. General Journal Debit Date Credit December 31

Answer 1

Answers:

Requirement 1:

	Date	Account title and Explanation	Debit	Credit
1	1/1/2019	Cash	$1,700,000
		Bonds payable		$1,700,000
		[To record issuance of bonds]

Requirement 2:

	Date	Account title and Explanation	Debit	Credit
2	6/30/2019	Interest expense [1,700,000 x 9% x 6/12]	$76,500
		Cash		$76,500
		[To record first semi-annual interest payment]
3	12/31/2019	Interest expense [1,700,000 x 9% x 6/12]	$76,500
		Cash		$76,500
		[To record second semi-annual interest payment]

Requirement 3:

	Date	Account title and Explanation	Debit	Credit
4	12/31/2022	Bonds payable	$1,700,000
		Cash		$1,700,000
		[To record cash paid at maturity for the bonds]